Effectiveness of migration and remittances in improving the well-being of migrant-sending households: evidence from Tajikistan

Azizbek TOKHIROV

Master's thesis

Abstract:

Given the considerable amount of private cross-border transfers, their potential role in improving the well-being of households is significant. Nevertheless, a conclusive answer on the contribution of remittances to development of migrant-sending communities cannot be derived from the literature. The variety of seemingly contradictory theoretical predictions suggests that a consensus is unlikely to be achieved in the foreseeable future. At the same time, only few empirical studies have investigated the impact of remittances on households in Central Asia, the region which lies on the cross-roads of active migratory movements. This study is aimed to determine the extent to which the receipt of international remittances influences household subjective well-being by applying the latest data from nationally-representative surveys conducted all over Tajikistan. After controlling for potential endogeneity in the treatment effects model based on the process of mental accounting, the findings countenance the notion that remittances can exert positive effects on the household well-being when measured by satisfaction with life as-a-whole. However, the impact of remittances is not unequivocally positive with respect to evaluative measures of financial welfare. The duality in the way remittances affect material and non-material well-being patterns is caused by the heterogeneity of treatment effects across different economic contexts.

Abstract:

Given the considerable amount of private cross-border transfers, their potential role in improving the well-being of households is significant. Nevertheless, a conclusive answer on the contribution of remittances to development of migrant-sending communities cannot be derived from the literature. The variety of seemingly contradictory theoretical predictions suggests that a consensus is unlikely to be achieved in the foreseeable future. At the same time, only few empirical studies have investigated the impact of remittances on households in Central Asia, the region which lies on the cross-roads of active migratory movements. This study is aimed to determine the extent to which the receipt of international remittances influences household subjective well-being by applying the latest data from nationally-representative surveys conducted all over Tajikistan. After controlling for potential endogeneity in the treatment effects model based on the process of mental accounting, the findings countenance the notion that remittances can exert positive effects on the household well-being when measured by satisfaction with life as-a-whole. However, the impact of remittances is not unequivocally positive with respect to evaluative measures of financial welfare. The duality in the way remittances affect material and non-material well-being patterns is caused by the heterogeneity of treatment effects across different economic contexts.

Keywords

consumption, investment, migration, remittances, subjective well-being

Language used: English

Date on which the thesis was submitted / produced: 31. 5. 2019

Thesis defence

• Supervisor: Ing. Mgr. Jaromír Harmáček, Ph.D.

Palacký University Olomouc

Faculty of Science

Master programme / field:
Geography / International Development Studies