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S By Soazic Elise WANG SONNE & Sabine KOWSKI United Nations University-MERIT 2016 IYAS Conference, Pretoria, South Africa Impact of migration remittances.

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Presentation on theme: "S By Soazic Elise WANG SONNE & Sabine KOWSKI United Nations University-MERIT 2016 IYAS Conference, Pretoria, South Africa Impact of migration remittances."— Presentation transcript:

1 s By Soazic Elise WANG SONNE & Sabine KOWSKI United Nations University-MERIT 2016 IYAS Conference, Pretoria, South Africa Impact of migration remittances on household welfare: does gender matter? Evidence from Burkina Faso

2 CONTEXT AND MOTIVATION (1)

3 --The amount of remittances has increased from 49.48 million U.S. dollars in 2005 to 105.74 million U.S. dollars in 2010 -- The top sending countries being Cote d’Ivoire and France CONTEXT AND MOTIVATION (3)

4  Positive relationship found between remittances and household welfare :  Migration can raise to a higher standard of living, households-receiving remittances through an improvement of education, health, income, poverty (e.g. Tingsabadh,1989; Gustafsson and Makonnen,1993; Lachaud,1999; Adams and Page,2005; Acosta et al., 2006; Jongwanich, 2007) and inequality (e.g. Vaqar et al, 2010; Taylor and Wyatt,1996); RELATED LITERATURE

5  Neutral/ Negative relationship found between remittances and household welfare :  With the so-called 'brain drain' phenomenon, with group of healthy educated people moving out of the country, there is an associated substantial loss of human capital.  Moreover, there is a dearth of literature on whether the effects of those remittances is gender biased. Besides, little is known on the existence of a differentiated effect of those remittances stemming from the gender of the sender. RELATED LITERATURE

6 6 DOES THE EFFECT OF HOUSEHOLD REMITTANCES ON WELFARE OUTCOMES MODERATED AND MEDIATED BY THE GENDER OF THE SENDER AND THE ONE OF THE RECIPIENT? NEUTRAL EFFECT Female Labor Supply in Morocco (Ibourk et al. (2014) GENDER MATTER!!!! LESS EFFECTS ON WOMEN Deere et al (2015) Lower women’s bargaining power in Ecuador and Ghana Tshikala et al.(2014) Lower adoption rate of new technologies in rural Senegal for women headed households

7 RESEARCH HYPOTHESIS

8 EMPIRICAL EVIDENCE FROM BURKINA FASO (West Africa)

9 World Bank Living Standard Measurement Survey data January -December2014 Detailed (Household and individual level )information on Characteristics of the sender and receiver of migration remittances 10,411 households

10 Ordinary Least Squares (OLS) With correction of potential endogeneity threats (EIV, OVB, Reverse Causality) 10 METHODOLOGY: MICROECONOMETRIC ESTIMATION (possible estimation framework) Propensity Score Matching (PSM)

11 INCOME LEVEL HOUSEHOLD DOES AGRICULTURE WOMEN RECIPIENT WOMEN SENDER OWNERSHIP OF LAND AND ACCESS TO CREDIT WELFARE 2 WOMEN SENDER 1 4 3 5 11 OWNERSHIP OF LAND AND ACCESS TO CREDIT HOUSEHOLD DOES AGRICUL TURE WOMEN RECIPIENT INCOME LEVEL VARIABLES USED

12 Propensity score matching: match treated and untreated observations on the estimated probability of being treated (Here have received remittances) (propensity score). Most commonly used. Match on the basis of the propensity score P(X) = Pr (D=1|X) –D is the Dummy indicating whether the household has reveived remittances Emprical Strategy (3)

13 13 WOMAN’S HEAD OF THE HOUSE RECEIVING REMITTANCES THE LEVEL OF CONSUMPTION AT THE HOUSEHOLD LEVEL WOMAN’S HEAD OF THE HOUSE RECEIVING REMITTANCES AND WOMEN’S SENDER THE LEVEL OF CONSUMPTION AT THE HOUSEHOLD LEVEL WOMAN’S HEAD OF THE HOUSE RECEIVING REMITTANCES AND WOMEN’S SENDER THE LEVEL OF MPI AT THE HOUSEHOLD LEVEL World Bank Living Standard Measurement Survey (LSMS) data

14 MIGRATION POLICIES SHOULD NOT BE GENDER NEUTRAL AS WOMEN ARE MORE LIKELY TO CONTRIBUTE TO THE WELFARE ENHANCEMENT OF THEIR COMMUNITIES BACK HOME WOMEN HEADED HOUSEHOLDS RECEIVING REMITTANCES ARE MORE LIKELY TO IMPROVE THE WELFARE OUTCOMES OF THEIR FAMILIES Policy Relevance/ Implications

15 THANK YOU


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