Linking Internal Migration, Flow of Remittances and Household Wellbeing

Abstract

Labor migration is usually considered as economically benefiting the household family members who are left behind through remittances. The extent of migration and remittances have shown significant growth however the empirical evidence on the casual impact of migration on economic status and wellbeing of those who are left behind is not well documented at the regional level in Pakistan. The study aimed to assess the impact of regional remittance flow on household economic status and wellbeing by using propensity score matching (PSM) technique. The first approach is to develop Multidimensional Poverty Index and second to show how pattern of inter and intra-provincial and regional remittances flow decreases the probability of poverty and affects the household wellbeing. For the analysis, the study utilized the nationally representative Pakistan Household Income and Expenditure Survey (HIES) 2013–2014. The results of the analysis lead to the conclusion that internal labor mobility occurs because of poverty, instead of benefitting the households who are left behind further had dragged them into risk of poverty. The poor individuals moving to urban or other areas in search of job opportunities had not been able to support themselves in new areas but also had failed to support their family back at home.