Do Migrant Remittances Reduce Poverty? Micro-Level Evidence from Punjab, Pakistan

Imran, Kashif and Devadason, Evelyn Shyamala and Cheong, Kee Cheok (2018) Do Migrant Remittances Reduce Poverty? Micro-Level Evidence from Punjab, Pakistan. Malaysian Journal of Economic Studies, 55 (1). pp. 19-47. ISSN 1511-4554, DOI

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This paper provides a poverty profile of households and then investigates the effects of international remittances on poverty incidence and severity in Punjab, Pakistan. Using cross-section data from the latest Multiple Indicator Cluster Survey for Punjab, the disaggregated analysis on the remittance-poverty nexus is examined by districts and urban-rural locales. From the poverty profile for migrant households with remittances and the counterfactual scenario of no remittances, the differences in the poverty reduction effect seem larger for poverty headcount than on the depth of poverty. The same trend holds for the urban-rural locales. This implies that remittances inflow were not really helpful for the poorest of the poor. The regression analysis further reveals that migrant remittances have significantly reduced the level and depth of poverty for households in all districts of Punjab, with the highest probability of being non-poor for rural households in the districts of South Punjab.

Item Type: Article
Uncontrolled Keywords: I32; I39; Migrant households; Pakistan; Poverty; Punjab; Remittances JEL classification: F24
Subjects: H Social Sciences > HC Economic History and Conditions
H Social Sciences > HN Social history and conditions. Social problems. Social reform
Divisions: Faculty of Economics & Administration
Depositing User: Ms. Juhaida Abd Rahim
Date Deposited: 06 Aug 2019 02:44
Last Modified: 06 Aug 2019 02:44

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