Assessing the poverty impacts of remittances with alternative counterfactual income estimates

Eliana V. Jimenez and Richard P.C. Brown
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Richard P.C. Brown: School of Economics, The University of Queensland, https://economics.uq.edu.au

No 375, Discussion Papers Series from University of Queensland, School of Economics

Abstract: We estimate the impacts of remittances on poverty with survey data from Tonga, a poor Pacific island country highly dependent on international migrants� remittances. The sensitivity of poverty impacts to estimation method is tested using two methods to estimate migrants� counterfactual incomes; bootstrap prediction with self-selection testing and propensity score matching. We find consistency between the two methods, both showing a substantial reduction in the incidence and depth of poverty with migration and remittances. With further robustness checks there is strong evidence that the poorest households benefit from migrants� remittances, and that increased migration opportunities can contribute to poverty alleviation.

Date: 2008
New Economics Papers: this item is included in nep-dev and nep-mig
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Persistent link: https://EconPapers.repec.org/RePEc:qld:uq2004:375

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