The Heterogeneous Impact of International Migration on Left‐behind Households: Evidence from Bangladesh

Abstract

AbstractThis article investigates the heterogeneous effects of international migration on the expenditure of Bangladeshi migrant households. Adopting a counterfactual framework, we estimate the impact of migration on per capita expenditure of left‐behind households according to their position in the counterfactual expenditure distribution and the length of the migration period. The effects on households’ social mobility and on inequality are also assessed. The analysis indicates that migration has a positive impact on per capita expenditure and represents an important vehicle of social mobility, but may also be a source of inequality. We also find that only a tiny share of international migrants originates from households belonging to the lowest expenditure quintile and, since most of the characteristics which seem to influence the migration decision cannot be shaped by policy interventions, our results also suggest that pro‐migration policies might not be effective in lifting those most in need out of poverty.