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The Impact of Migration and Remittance on Household Welfare: Evidence from Vietnam

Nguyen, Cuong and Vu, Linh (2017): The Impact of Migration and Remittance on Household Welfare: Evidence from Vietnam.

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Abstract

This paper examines the pattern and the impact of migration and remittances on household welfare in Vietnam using fixed-effects regressions and panel data from Vietnam Household Living Standard Surveys 2010 and 2012. Overall, the effect of migration as well as remittances on employment of remaining members on home households is small. People in households with migration and remittances tend to work less than people in other households. There is no evidence that migration and remittances can help household members to work more on non-farm activities. Remittances, especially international remittances help receiving households increase per capita income and per capita expenditure. Although migration leads to an increase in remittances, it also leads to a reduction in income earned by migrants if they had not migrated. However, per capita consumption expenditure of migrant-sending households increases because of a reduction in household size

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