Life Satisfaction of the Families of Migrants in the Philippines

Abstract

Although remittance income is likely to increase the level of financial resources in the household, such a contribution should be assessed against the disruptive effect of migration on other aspects of family life. Using individual-level data from the Philippines, this article explores the impact of international migration on the life satisfaction of the families of migrants in the home country. The analysis compares happiness outcomes across non-migrant households, the households reliant on remittances as a primary source of household income, and the households that receive remittances but do not rely on them. The findings suggest that migration is positively associated with higher levels of life satisfaction only when remittances are large enough to compensate for the psychological distress caused by the migration. The results confirm the importance of remittances as a source of human improvement but, at the same time, highlight the fact that international migration is not a costless enterprise.