Abstract

In the Nepalese economy, job scarcity is very high because of low levels of industralisation and stagnancy in agriculture sector. Out-migration is evolved to be inevitable consequence of the inability of private sector as well as government policies to create jobs keep pace with the domestic supply of labour. Nepali migration to India is not new phenomena but after 1990s, more than one fifth of Nepalese labour force is thought to have moved to abroad, mainly to Middle East, South East and, India as low paid, unskilled temporary laborers (Khatri 2009).The migrant labor and remittances comprise a crucial component of the Nepalese economy. Though remittances phenomena have been growing rapidly, there is a lack of adequate detailed data on the subject. It is interesting that in Nepal’s first Human Development Report, nothing has been written on the remittances and it also underestimated the figures of foreign labor migrants-suggesting no more than 12,000 (NESAC/UNDP 1998), although it is widely known that the figure is much more than the mentioned above. Migration became the safety valve of Nepali economy which suffered from prolonged conflict, political instability, and unrest. Nepali youths are going abroad even though their income is marginal in these countries. Remittances’ impact on the economy in Nepal gained more significance in the last two decades because of following reasons: 1) the country is poor and per capita income is low; and 2) labour productivity is low (Khatri 2009). Nepal Living Standard Survey (2011) report consistently says that the substantial growth of volume of remittance income and the number of recipients from abroad is reducing poverty even in internal conflict situations. Households receiving remittances have increased from 23.4 percent to 55.8 percent during 1995-96 to 2010.. International remittance income increased from 7 billion to 258 billion rupees in the corresponding time periods (NLSS 1996, 2004 and 2010, and Dhakal 2012). KEYWORDS: migration, employment, foreign remittance, emigration, foreign exchange, migrant workers

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