What are the socio-economic implications of migration and remittances?
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Migration and remittances have significant socio-economic implications. Remittances improve households' welfare by lifting families out of poverty and insuring them against income shocks . They also lead to increased incomes, poverty reduction, improved health and educational outcomes, and promote economic development in sending countries . However, there are social costs to migrants and their families associated with migration and remittances . The effects of remittances on inequality are ambiguous, as they can both decrease economic inequality in communities with a long migration tradition and increase inequality within communities at the beginning of the migration process . Migration and remittances are part of risk-spreading and co-insurance livelihood strategies pursued by households and families, but they are not a panacea for solving more structural development problems . Policies aimed at improving social security, public services, and creating functioning markets are also necessary to enhance the contribution of migration and remittances to social development .
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| Papers (5) | Insight |
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Open access•Journal Article 59 Citations | The provided paper does not directly discuss the socio-economic implications of migration and remittances. |
| The paper discusses that migration and remittances have the potential to improve well-being, stimulate economic growth, and reduce poverty directly and indirectly. Their effects on inequality are more ambiguous. | |
| The paper discusses the growth effects of migrants' remittances, including their impact on self-employment, investment in small businesses, and educational attainment of children in households with migrant members. However, it does not explicitly mention the socio-economic implications of migration and remittances. | |
| The provided paper discusses the macroeconomic effects of remittances on recipient economies, including how they improve households' welfare and lift families out of poverty. However, it does not specifically address the socio-economic implications of migration and remittances. | |
| The paper states that migration and remittances can lead to increased incomes, poverty reduction, improved health and education outcomes, and promote economic development in sending countries. However, there may be social costs to migrants and their families. The paper also mentions challenges faced by receiving countries, such as integration of immigrants, job competition, and fiscal costs. |
Related Questions
How does remittances contribute to the economic growth and development of Pakistan?4 answersRemittances have a significant impact on the economic growth and development of Pakistan. They contribute to the country's balance of payments, stabilize the local currency, and increase levels of consumption and investment. Remittances are crucial for the stability of the external sector and play a vital role in the balance of payments of developing countries like Pakistan. Worker remittances have both direct and indirect, short-term and long-term relationships with living standards, contributing to the creation of financially sound plans. International remittances are a stable and stabilizing source of foreign exchange, countercyclical to the home economy, and lead to an increase in household asset stock. In the case of Pakistan, an increase in remittance inflows positively affects economic growth, primarily through increased consumption and potentially promoting investment activity.
What are the negative aspects of remittance?5 answersRemittances have several negative aspects. Firstly, they can lead to the hollowing out of productive household members and create inefficiency in farm production due to a shortage of labor and income substitution effect. Secondly, remittances contribute to increasing imports for luxury and semi-luxury goods, resulting in a trade deficit and weakening the export sector of the economy. Thirdly, at the micro-level, remittances have been responsible for family breakdowns, erosion of family values, exploitation, and inhuman treatment of migrant workers by employers, and problems of reintegration of migrants upon return. Lastly, remittances can have a negative impact on income inequality, as an increase in GDP per capita, government expenditure, and inflation can widen the income gap between rich and poor people in developing economies.
What is the relevance of remittances in children's education?4 answersRemittances have a significant impact on children's education. Studies from Pakistanand Bangladeshshow a positive relationship between remittances and school enrollment. In Pakistan, international remittances positively influence the enrollment of male children, while the impact on female children is non-significant. Internal remittances, on the other hand, have a negative effect on enrollment. In Bangladesh, remittances are found to increase school enrollment, along with the positive influence of parents' education levels. However, household location (urban) and gender of children (male) have a negative impact on enrollment. In Ecuador, the effects of remittances on schooling vary based on factors such as household wealth, rural vs. urban location, and family migration status. Positive effects are observed for poorer, urban males, while negative effects are seen for rural females. The effects of remittances are either negative or non-significant for wealthier households. In African contexts, receiving both in-kind and monetary remittances positively impacts children's education, with direct investment in education further enhancing the positive effects. The absence of remittances has more negative effects, especially for girls.
How do remittances affect household consumption?5 answersRemittances have a positive impact on household consumption, particularly in the areas of food and education. They are associated with increased expenditures on food and education, which can contribute to long-term investments in human capital and overall economic development. On the other hand, remittances have a negative association with expenditures on alcohol and tobacco. Remittance-receiving households also tend to spend a smaller share of their budget on wedding ceremonies, indicating a lower engagement in conspicuous consumption. However, the impact of remittances on household consumption stability and economic growth is not automatic and depends on various factors. In some cases, remittances can reduce household consumption volatility and have a stabilizing effect. Overall, remittances can play a significant role in influencing household consumption patterns and have implications for economic development.
How do remittances influence gini?5 answersRemittances have an uncertain impact on inequality, but they are likely to increase inequality in poorer areas. This is supported by a theoretical model and empirical evidence from Honduras. The impact of remittances on income distribution depends on the weights attached to different income levels. In villages with Mexico-to-U.S. migration experience, remittances from Mexico-to-U.S. migrants have a favorable effect on income distribution, but this effect decreases when more weight is given to incomes in the poorest households. Remittances in India have a positive influence on private consumption, suggesting an income effect, but do not significantly affect private investment or output growth. Remittances increase financial depth and profitability in low, lower-middle, and middle-income countries, but their impact on financial expansion is negative when used for consumption. Remittances can reduce electoral participation in violent democracies, but high levels of crime can negate this effect and make remittance recipients more likely to vote.
How do remittances affect household expenditure patterns?5 answersRemittances have a positive impact on household savings, increasing both the amount of saving and the saving rate. Receiving households tend to spend more on health, assets, and house repairs, and less on food. Remittances are positively associated with expenditures on food and education, while negatively associated with expenditures on alcohol and tobacco. Remittances also have a negative effect on food expenditures, suggesting increased economic inequalities resulting from increased remittances. Remittance-receiving households spend a smaller share of their budget on wedding ceremonies, indicating less engagement in conspicuous consumption. External remittance-receiving households have significantly higher expenditure per capita compared to internal migrant or non-migrant households, contributing to expenditure inequality. Overall, remittances can lead to increased savings, productive investments in human and physical capital, and changes in expenditure patterns, with implications for long-term economic development and inequality.