Impact of Remittances on Household Welfare in Pakistan
Author: Mehtab Habib

In the current debate on the different perspectives of remittances, the most investigated relationship is the impact that the receipt of remittances can craft on the welfare and development of the migrant sending economies. Though, most of the earlier studies concluded that remittances have a positive impact on poverty reduction and also contribute to the household welfare in societies from where the migrants originate. The problem with most of these studies and especially with the studies conducted in Pakistan is the selection biasedness, in a way that these studies did not consider the observable characteristics of the households that are included in their analysis. The objective of this study is to deal with selection biasedness issue by using propensity score matching while also estimate the impact of remittances on some indicators of household welfare like poverty, current school enrollment of children, type of institution selected, prenatal care of the reproductive married women, her immunization and place of child delivery. HIES 2010-11 data is used to evaluate the impact of remittances on some selected indicators of household welfare, for the school going age children 5-14 years and married women of 15-49 years. To tackle the issue of selection biasedness the methodology of propensity score matching is used in this study. It is assured by PSM that the observed characteristics are identical for both of the comparison and the treatment groups. This study concluded that the receipt of remittances has a poverty reducing impact for the receiving households. While for the child schooling it is suggested that among the remittance receiving households the current school enrollment has appositive relationship with remittances, as far as the type of institution in which the child is admitted is concerned it is advocated that among the remittance receiving households the parents prefer to admit their children in the private schools in search of the better quality education. For the impact on the health status of the reproductive married women, this study tells that if these women belong to the remittances receptor household than there are more chances for receiving the prenatal care and immunization as the household budget constraint is eased by the remittance receipt and for place of child delivery variable it is depicted by this study that the reproductive married women prefer hospital instead of home for child delivery as these households have more resources to pay for the expenditures. Supervisor:- Dr. Shujaat Farooq

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Keywords : Household Welfare, Pakistan, REMITTANCES
Supervisor: Shujaat Farooq

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