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Migration and Household Welfare in Ethiopia

Migration and Household Welfare in Ethiopia. Lisa Andersson, University of Gothenburg Katie Kuschminder, Maastricht Graduate School of Governance. Migration and Household Welfare. Loss of Labour from household Remittances Return Migration: Return of Success Return of Failure.

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Migration and Household Welfare in Ethiopia

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

  2. Migration and Household Welfare • Loss of Labour from household • Remittances • Return Migration: • Return of Success • Return of Failure

  3. 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

  4. Remittances and Household Welfare • Macro level- remittances lead to positive economic growth • Adams and Page, 2005- “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 .

  5. 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

  6. Case Study: Ethiopia • Population of 80 million • Emigration rate of 0.4% • Estimated Diaspora Population of 1-2 Million • Remittances 2010- $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

  7. 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

  8. Descriptive Statistics

  9. Descriptive Statistics

  10. Descriptive Statistics: HH Head

  11. Migration Destination and Remittances

  12. 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

  13. 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

  14. Thank you! Lisa.andersson@economics.gu.se Katie.kuschminder@maastrichtuniversity.nl

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