Work-Related Migration and Poverty Reduction in Nepal

10 Pages Posted: 19 Apr 2010

See all articles by Michael Lokshin

Michael Lokshin

World Bank - Development Research Group (DECRG); National Research University Higher School of Economics

Mikhail Bontch-Osmolovski

World Bank - DECRG

Elena Glinskayai

World Bank

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Abstract

Using two rounds of nationally representative household survey data in this study, we measure the impact on poverty in Nepal of local and international migration for work. We apply an instrumental variables approach to deal with nonrandom selection of migrants and simulate various scenarios for the different levels of migration comparing observed and counterfactual household expenditure distribution. Our results indicate that one-fifth of the poverty reduction in Nepal occurring between 1995 and 2004 can be attributed to higher levels of work-related migration and remittances sent home. We also show that while the increase in international work-related migration was the leading cause of this poverty reduction, domestic migration also played an important role. Our findings demonstrate that strategies for economic growth and poverty reduction in Nepal should consider aspects of the dynamics of domestic and international migration.

Suggested Citation

Lokshin, Michael and Bontch-Osmolovski, Mikhail and Glinskaya, Elena, Work-Related Migration and Poverty Reduction in Nepal. Review of Development Economics, Vol. 14, No. 2, pp. 323-332, May 2010. Available at SSRN: https://ssrn.com/abstract=1590545 or http://dx.doi.org/10.1111/j.1467-9361.2010.00555.x

Michael Lokshin (Contact Author)

World Bank - Development Research Group (DECRG) ( email )

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National Research University Higher School of Economics

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Mikhail Bontch-Osmolovski

World Bank - DECRG ( email )

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MSN3-311
Washington, DC 20433
United States

Elena Glinskaya

World Bank ( email )

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Washington, DC 20433
United States
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