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Jason Schachter - UNECE Statistical Division Slide 1 Use of Household Surveys to Measure International Migrant Remittances Jason Schachter, Statistician.

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Presentation on theme: "Jason Schachter - UNECE Statistical Division Slide 1 Use of Household Surveys to Measure International Migrant Remittances Jason Schachter, Statistician."— Presentation transcript:

1 Jason Schachter - UNECE Statistical Division Slide 1 Use of Household Surveys to Measure International Migrant Remittances Jason Schachter, Statistician United Nations Economic Commission for Europe Towards better Evidence on Migration and Development in Eastern Europe and Central Asia, Capacity-building Workshop on Migration Statistics Almaty, Kazakhstan, 1 November, 2013 Remices Suitland MD, January 14-5, 2008

2 Jason Schachter - UNECE Statistical Division Slide 2 Introduction  International remittances received by developing countries to reach US$ 414 billion in 2013 (US$ 167 billion in 2005).  Migrant remittances are a source of foreign currency exchange, enabling countries to acquire imports or pay off debt.  Remittances reduce poverty and can contribute to economic development in migrant-sending countries.  Quality of current remittance data could be improved  Increase in the number of household surveys used to measure remittances.

3 Jason Schachter - UNECE Statistical Division Slide 3 BOP Definition of Remittances  Definitions revised by IMF in 2007 (TSG, Luxembourg group) -BMP6- Concept of “migrant” no longer relevant, as definitions based on residency (at least 12 months in household)‏ Categories  Personal Transfers (all current transfers in cash or in kind between resident and non-resident households)‏  Employee Compensation (transfers between non- resident households)‏  Personal Remittances (first two, plus capital transfers between households –total net worth of households transferred at initial time of migration-)‏  Total Remittances: Personal remittances plus social benefits (social insurance and assistance)

4 Jason Schachter - UNECE Statistical Division Slide 4 BOP Definitions, Cont.  Recommended reporting of bi-lateral flows  Independent of relationship between sender- receiver, so family and non-family transfers included.  Except for personal transfer category, definitions are supplementary, thus countries are encouraged (not required) to complete.  Remittances can be: Monetary: Cash, money transfers, cheques, etc. In-Kind: Goods, donations, payments made on behalf of others, etc.

5 Jason Schachter - UNECE Statistical Division Slide 5 Some Old Limitations of “Balance of Payment" Remittance Data  Inability of banks to distinguish between short-and long- term migrants (one-year residency)‏  Inconsistent recording and reporting practices of BOP between, and even within, countries over time  Inability to identify flows (where remittances go (WB models))‏  Small transactions often go unrecorded by banks  Miss transactions made at non-bank locations (e.g. money transfer centres)‏  Lack of information about "informal" (e.g. hand-carried) or “in-kind” (e.g. goods) remittances

6 Jason Schachter - UNECE Statistical Division Slide 6 How Can Household Surveys Help Measure Remittances?  Improve measurement of the size of remittances by collecting information missing from current BOP methods (i.e. informal and “in-kind” remittances, etc.)‏  Measurement of the characteristics of remittance senders and receivers.  Measurement of the impact of remittances (e.g. on poverty)

7 Jason Schachter - UNECE Statistical Division Slide 7 Potential Drawbacks to Household Surveys  Coverage: Many sampling frames miss foreigners and/or GQ populations (which often house temporary migrants)  Large sample needed to identify flows  Hard to find population: Insufficient number of cases, particularly in destination countries, since using a sample of the population to measure a relatively rare event (migration).  Non-response (unit and item) particularly for “illegal” migrants and sensitive questions  Data quality (question sensitivity): Data recall and accuracy, especially for money-related information  Cost of conducting (and sustaining) household surveys

8 Jason Schachter - UNECE Statistical Division Slide 8 Household Surveys Measuring Remittances  Several countries include remittance questions on national household surveys.  Census: e.g. Guam, Dominican Republic, Palau, Tuvalu, St. Lucia (just a few questions)‏  Detailed remittance questions included as modules on several national household surveys, as well as internationally coordinated surveys

9 Jason Schachter - UNECE Statistical Division Slide 9 Examples of Internationally Coordinated Surveys  WB Living Standards and Measurement Study (LSMS) Surveys (e.g. Tajikistan 2009) World Bank Ad-Hoc Surveys (e.g. Survey of African Diaspora in Belgium; African Migration Project, etc.)  ILO Labour Migration Surveys (e.g. Armenia, Moldova, Ukraine)  IOM sponsored surveys (Albania, Moldova, Serbia and Montenegro, Tajikistan, and Ukraine)  Asian Development Bank (2007: Armenia, Azerbaijan, Kyrgyzstan, Tajikistan)

10 Jason Schachter - UNECE Statistical Division Slide 10 Some Recent Regional Examples  Tajikistan 2009 LSMS (1,500 households)  Armenia 2006 Migration Survey (2,000 hhlds); 2011 Integrated Living Conditions Survey (7,872 hhlds); (2013 Migration Survey)  Ukraine 2012 Labour Migration Survey (27,800 hhlds)  Moldova 2012 LFS survey migration module (Q4: 16,000 households)

11 Jason Schachter - UNECE Statistical Division Slide 11 Tajikistan (LSMS) Module 2: Migration  Individuals 14 and older currently not residing in household because working abroad (current migrants) Did they remit to household, in cash, past 12 months?  Value of all remittances in cash sent past 12 months on average per month Did they remit in-kind? (not defined)  Value of all remittances in-kind sent Main method to remit cash or in-kind (12 months)

12 Jason Schachter - UNECE Statistical Division Slide 12 Module 7: Transfers and Social Assistance  During past 12 months has your household or any members received any money or goods from person who do not live in household (e.g. relatives living elsewhere…)… Name/relationship to head of household Where (donor) lives & since when lived there How much money received past 12 months, Main reason for assistance Food or other goods (past 12 months) Approximate cash value of food/goods August 17, 2015

13 Jason Schachter - UNECE Statistical Division Slide 13 Module 7, continued.  During past 12 months has your household or any members made any gift (cash or in-kind) to persons who do not live in this household…(for example, relatives living elsewhere…) Name/relationship to household head How much money given/sent past 12 months Main reason for assistance Food/goods & value in past 12 months (Nothing about where live)

14 Jason Schachter - UNECE Statistical Division Slide 14 Armenia: 2006 Migration Survey  Return migrants (3 month or more, since 1990) (16 and over)  While living abroad, ever send money or goods to friends or relatives in Armenia?  Remittances received from houshold members currently residing abroad/other persons living abroad August 17, 2015

15 Jason Schachter - UNECE Statistical Division Slide 15  Relationship to head of household  Country of residence/when moved/if work  Ever send money home  First/last time sent money  Frequency of sending (past 12 months)  Total value of money received past 12 months  Methods used most frequently to send  Use of money  Goods from abroad (past 12 months) –Item, value, method to send August 17, 2015

16 Jason Schachter - UNECE Statistical Division Slide 16 Integrated Living Conditions Survey (2011)  Houshold member who migrated or returned since 2008 (internal and international,15 years and older) Did (name) send remittances to immediate family, in cash or in-kind, at any point during the past 12 months (immediate family/ relatives/friends). August 17, 2015

17 Jason Schachter - UNECE Statistical Division Slide 17 H. Monetary and Commodity Flows between Households  Did household send/receive money or goods to/from an absent household member or any other person during last 12 months?  Name/Where lives  Regularity, amount transferred past 12 months  How transfered (bank, post, other)  Purpose of transfered money  Total value of food or goods transfered past 12 months August 17, 2015

18 Jason Schachter - UNECE Statistical Division Slide 18 2013 Integrated Survey of the Migration of the RA Population 2007-2013  RA National Statistical Service, State Migration Service (Russian-Armenian University),IOM  Remittance and Financial Prosperity (7b) Financial situation improve over past 5 years (if worse: reduction in remittances), importance of current sources received from abroad If sent money/goods abroad, frequency, total sum past 12 months If received money from abroad past 12 months August 17, 2015

19 Jason Schachter - UNECE Statistical Division Slide 19 Continued  Money received from abroad past 12 months (all sources) Total amount Method to send Use of money received Goods received past 12 months  Type  Value  Means of sending August 17, 2015

20 Jason Schachter - UNECE Statistical Division Slide 20 Ukraine: 2012 Labour Migration Survey  State Statistics Service of Ukraine (ILO, IOM) (2008 previously) (15-70 year olds)  Section D "Income from abroad and household welfare“ - Source of support from abroad - Type of support and amount of cash support - Frequency and method of receiving financial support - Use of financial support and total share of household income - Types of goods and their value

21 Jason Schachter - UNECE Statistical Division Slide 21 Moldova LFS Labour Force Migration Module (2012)  Household members, 15-64, currently living outside country/Recent return migrants (past 2 years) What was the average monthly amount of remittances sent/transferred/brought during last 2 years (24 months) How money was usually sent to beneficiaries What money was mainly used for (>1 response possible) August 17, 2015

22 Jason Schachter - UNECE Statistical Division Slide 22 Measurement of Remittances on Household Surveys  IMF definition: Remittances include all household income obtained or sent from abroad, regardless of relationship between sender and receiver Monetary or in-kind Social benefits  Note: in addition to international migrants, internal migrants also send remittances (e.g. Armenia ILCS, Tajikistan LSMS)

23 Jason Schachter - UNECE Statistical Division Slide 23 Concepts Essential for the Measurement of Remittances  Population of interest (sending and receiving countries)‏  Characteristics of remittance senders and receivers  Size of remittances (total amount, frequency, mode, etc.)‏  Impact of remittances on receivers (and economic areas)‏

24 Jason Schachter - UNECE Statistical Division Slide 24 Populations of Interest  Origin Countries  Migrants currently living abroad (e.g. All regional examples)  Return migrants (former remitters)  (e.g.‏ Armenia (2006), Moldova LFS)  Destination Countries Current migrants (who remit)  (e.g. WB Diaspora survey, Belgium)  More difficult to sample/find rare populations (migrants, who remit). Targeted sampling approaches

25 Jason Schachter - UNECE Statistical Division Slide 25 Characteristics  Who remits?  Characteristics of households receiving remittances If receive/send remittances (net remittances)  (sent: Armenia (ILCS & 2013), Tajikistan) Demographic & socioeconomic characteristics of senders/receivers (age, sex, education, occupation, etc.)  (available for receivers, but rare for senders in regional examples) August 17, 2015

26 Jason Schachter - UNECE Statistical Division Slide 26 Characteristics, cont.  Relationship between sender and receiver  If include non-family members (all except Moldova)  If send or receive monetary or in-kind remittances  All ask about monetary remittances ( Armenia, Tajikistan, and Ukraine ask about goods)  When ask about goods (and food), do not ask about other types of in-kind remittances (e.g. payments made on behalf of others).  None specifically ask about social benefits (e.g. pensions received from abroad). August 17, 2015

27 Jason Schachter - UNECE Statistical Division Slide 27 Size: Total value of remittances sent or received  Time frame usually 12 months, but sometimes ask monthly and/or most recent amount  Moldova average monthly amount (past 24 months)  Tajikistan monthly (past 12 months),  Armenia total amount (past 12 months)  Return migrants often asked average amount sent per year while living abroad (recall issues)  Armenia: not ask for amount  Moldova: average monthly amount (recent returnees)  Do household surveys underreport the actual amount of remittances sent and received?

28 Jason Schachter - UNECE Statistical Division Slide 28 Other Dimensions of “Size” (characteristics of remittances)‏  Frequency  How often remittances sent or received (Armenia & Ukraine)‏  Armenia ILCS: Regularity (monthly, quarterly, annually)  Armenia (2006): How many times received money past 12 months?  Mode of delivery –id formal/informal channels- (all ask, though different response categories)‏ Moldova (bank account deposit/MTO/courier/personally/friends or relatives/other(specify)) Tajikistan (foreign bank/tajik bank/brought by self/ sent with others/hawala system) Armenia ILCS (bank/post/other); 2006 Survey (bank/MTO/post/agent/personally/friends or relatives/other)

29 Jason Schachter - UNECE Statistical Division Slide 29 Other Dimensions of “Size,” cont.  Details about monetary transactions (cost, how long it took to receive, trust in banking institutions, etc.) None  Goods (past 12 months): type, quantity, value, how sent/received (Armenia 2006) Armenia ILCS & Tajikistan (value of goods only) Ukraine: type and value  Other in-kind None  Value of “social benefits,” (none) Ex. “Do you receive a pension for work done while away from this country? How much do you receive monthly?” ILO

30 Jason Schachter - UNECE Statistical Division Slide 30 Measuring the Impact of Remittances  Subjective Well-Being Social protection (increase with need?) Poverty reduction (poverty rate with and without) Dependency/reliance on remittances  Use of remittances Household investment Community investment Material wealth Education Health August 17, 2015

31 Jason Schachter - UNECE Statistical Division Slide 31 31 Impact Questions  Level of income with and without remittances (most measure on national surveys, e.g. LFS)‏  What money used for (all ask, “main reason”)‏ Moldova (12 categories, consumption, investment) Tajikistan (10 categories, inc. Investment) Armenia ILCS (3 categories: daily consumption, real estate/property) Armenia 2006 (17 categories, investment)  Dependency on remittances (none)‏ Ex. “Does this person depend on you financially for more than 25% of his/her income?” ‏ILO  Often ask for detailed information about expenditures‏

32 Jason Schachter - UNECE Statistical Division Slide 32 Harmonization  Harmonized questions needed to enhance quality (reliability and validity) of data, as well as comparability between countries Progress over past 6 years, as regional examples show  What essential dimensions are needed to harmonize the measurement of remittances?  Should a BOP framework be used?

33 Jason Schachter - UNECE Statistical Division Slide 33 Recommended Concepts to be Included on Household Survey Questionnaires  Limited number of questions which can be asked  Depends on what exactly you want to measure  Follow good questionnaire design (e.g. clearly worded, mutually exclusive and exhaustive response categories)‏  Use a 12-month time frame for remittances (monthly)‏  Return migrants relatively recent (if want remittance details)‏  Identify sender-receiver relationship and include remittances from non-family (household) members

34 Jason Schachter - UNECE Statistical Division Slide 34 Recommendations, Cont.  Both monetary and in-kind (not just goods), including social benefits received  Social and demographic characteristics  Income with and without remittances  Use of informal channels (mode of transfer)‏  Use of remittances (include measure of reinvestment)‏  Identify duration of residence abroad


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