Work-Related Migration and Poverty Reduction in Nepal

59 Pages Posted: 20 Apr 2016

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

Multiple version iconThere are 2 versions of this paper

Date Written: May 1, 2007

Abstract

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

Keywords: Population Policies, Anthropology, Rural Poverty Reduction, Consumption, Small Area Estimation Poverty Mapping

Suggested Citation

Lokshin, Michael and Bontch-Osmolovski, Mikhail and Glinskaya, Elena, Work-Related Migration and Poverty Reduction in Nepal (May 1, 2007). World Bank Policy Research Working Paper No. 4231. Available at SSRN: https://ssrn.com/abstract=985003

Michael Lokshin

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

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HOME PAGE: http://econ.worldbank.org/staff/mlokshin

National Research University Higher School of Economics

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Moscow, Moscow 119017
Russia

Mikhail Bontch-Osmolovski

World Bank - DECRG ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

Elena Glinskaya (Contact Author)

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States
202-477-1234 (Phone)
202-522-0356 (Fax)

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