Migration and Household Welfare in Ethiopia Lisa Andersson, University of Gothenburg Katie Kuschminder, Maastricht Graduate School of Governance

Maastricht Graduate School of Governance Migration and Household Welfare 1.Loss of Labour from household 2.Remittances 3.Return Migration: –Return of Success –Return of Failure

Maastricht Graduate School of Governance Return Migration and Household Welfare Less evidence than in the case of remittances Human and Social Capital Accumulation Kilic et al. (2009) found a strong, positive relation between past (return) migration and non-farm business ownership in Albania- increased for people who did not return from Greece

Maastricht Graduate School of Governance Remittances and Household Welfare Macro level- remittances lead to positive economic growth Adams and Page, “a 10% increase in per capita official international remittances in a developing country will lead to a 3.5% decline in the share of people living on less than $1.00/person/day” Hildebrandt and McKenzie, 2004 – children born in international migration households are 3% less likely to die in their first year than children in non- migration households.

Maastricht Graduate School of Governance Literature Gaps Remittances – Little evidence on the household effect in Sub-Saharan Africa Still questions as to how return migration affects the household Comparability between non-migrant, current migrant, remittance receiving, and return migrant households

Maastricht Graduate School of Governance Case Study: Ethiopia Population of 80 million Emigration rate of 0.4% Estimated Diaspora Population of 1-2 Million Remittances $0.4 Billion Remittances estimated at 2.2% of GDP Diaspora Largely concentrated in Middle East, North America, and Europe Ranks 169 on the HDI

Maastricht Graduate School of Governance IS Academy Survey: Ethiopia 1226 Household Surveys 15 Sites in 5 regions Purposive Two-stage Sampling Strategy –15 Woredas Selected and 3 Kebeles in each Woreda Listed Random Selection of Households for Enumeration

Maastricht Graduate School of Governance

Descriptive Statistics All CM HHs Unique CM HHs All RR HHs Unique RR HHs All RM HHs Unique RMS HHs NM HHs All HHs n % Average HH Size Urban (n) % Addis (n) %

Maastricht Graduate School of Governance Descriptive Statistics All CM HHs Unique CM HHs All RR HHs Unique RR HHs All RM HHs Unique RMS HHs NM HHs All HHs HHs with Children (n) % Ave No. Of Children HHs with Young Children % Average No. Of Working Age in HH (18-65) Average No. Of Working Age in HH (14-65)

Maastricht Graduate School of Governance Descriptive Statistics: HH Head All CM HHs Unique CM HHs All RR HHs Unique RR HHs All RM HHs Unique RMS HHs NM HHs All HHs HH Head Migration Experience % Years of Education of HH head Age of HH Head Female HH Head % HH Head Farmer % HH Head Employed %

Maastricht Graduate School of Governance Migration Destination and Remittances Migration Destination Number of MigrantsRemittances (Birr, past 12 months) Middle East231 (45.5%)6803 Africa102 (20.1%)3585 Europe34 (6.7%)14203 North America106 (20.9%)15129 Other21 (4.2%)- Total

Maastricht Graduate School of Governance CoefficientStandard Deviation Size** Children** Youngchild Workingage Urban** Primary Secondary Higher Eduyear Headage Gender Employed** Business** Agricultural Housework Amhara Tigray SNNP** Oromiya** _cons

Maastricht Graduate School of Governance Coefficient Standard Deviation Size** Children** Youngchild Workingage Urban** Primary Secondary Higher Eduyear Headage Employed** Business** Agricultural Housework

Maastricht Graduate School of Governance CoefficientStandard Deviation Size** Children** youngchild workingage Urban** primary secondary higher eduyear headage employed Business** Agricultural** Housework** Amhara Tigray* SNNP** Oromiya*

Maastricht Graduate School of Governance Discussion Probability to remit is: –More likely if have large household size –Less likely if have children –More likely if live in an Urban Area –Less likely if the HH Head has employment –Less likely if the HH Head owns their own business

Maastricht Graduate School of Governance Next Steps Propensity Score Matching: –Remittance Receiving Households to Non- Migrant HHs –Question regarding Return Migration Look further at the effect of migration on welfare using food expenditure per capita or per adult equivalent Comparability between the different groups

Maastricht Graduate School of Governance Thank you!