Drivers of overseas labour migration, migration intensity, and destination choice among farming households in Nepal

Abstract

ABSTRACT In recent years, overseas labour migration has become a lifeline for many households in Nepal. Using survey data from 465 randomly selected households and 227 overseas labour migrants, this paper examines the factors influencing overseas labour migration and migration intensity in farming households by employing a generalised two-part fractional regression model, and migrants’ destination choice by using the probit model. We find that a higher proportion of educated members in the household, along with household’s credit access, indebtedness, and contacts with manpower agencies significantly increase the likelihood of overseas labour migration and migration intensity in the households, whereas the presence of employed members in the household, larger farms, irrigation access, and higher asset index significantly lower such likelihood. We find a lower likelihood of migration to Malaysia and the Middle East countries among individuals with employed household members and a higher asset index, while those connected to manpower agencies are more likely to choose these countries as destinations. Our findings emphasise the significance of creating and providing decent economic opportunities, including strengthening the agriculture sector, to address the existing surge in overseas labour migration from farming households in Nepal.