Work-Related Migration and Poverty Reduction in Nepal

Using two rounds of nationally representative household survey data in this study, we measure the impact on poverty in Nepal of local and international migration for work. We apply an instrumental variables approach to deal with nonrandom selection of migrants and simulate various scenarios for the different levels of migration comparing observed and counterfactual household expenditure distribution. Our results indicate that one-fifth of the poverty reduction in Nepal occurring between 1995 and 2004 can be attributed to higher levels of work-related migration and remittances sent home. We also show that while the increase in international work-related migration was the leading cause of this poverty reduction, domestic migration also played an important role. Our findings demonstrate that strategies for economic growth and poverty reduction in Nepal should consider aspects of the dynamics of domestic and international migration.

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Bibliographic Details
Main Authors: Lokshin, Michael, Bontch-Osmolovski, Mikhail, Glinskaya, Elena
Format: Journal Article biblioteca
Language:EN
Published: 2010
Subjects:International Migration F220, Measurement and Analysis of Poverty I320, Welfare and Poverty: Government Programs, Provision and Effects of Welfare Programs I380, Geographic Labor Mobility, Immigrant Workers J610, Microeconomic Analyses of Economic Development O120, Economic Development: Regional, Urban, and Rural Analyses, Transportation O180, Urban, Rural, and Regional Economics: Regional Migration, Regional Labor Markets, Population, Neighborhood Characteristics R230,
Online Access:http://hdl.handle.net/10986/4724
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