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Issues of Horizontal Inequality: A Case Study in Migrant Households

Issues of Horizontal Inequality: A Case Study in Migrant Households. R.M.K.M.Lakmini and J. Weerahewa Department of Agricultural Economics and Business Management Faculty of Agriculture University of Peradeniya. Introduction. Horizontal Inequality Estate Sector

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Issues of Horizontal Inequality: A Case Study in Migrant Households

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  1. Issues of Horizontal Inequality: A Case Study in Migrant Households R.M.K.M.Lakmini and J. Weerahewa Department of Agricultural Economics and Business Management Faculty of Agriculture University of Peradeniya

  2. Introduction • Horizontal Inequality • Estate Sector • How Estate Sector differ from other two sectors in the country??? • Income • Food ratio • Poverty • Population contribution • Thereby Estate Sector is considered as a unique segment of an underprivileged community.

  3. Introduction Contd. • People tend to move out from estate employment both locally & overseas. • Within non-estate employment, overseas employment, predominantly in the Middle East was a key agent of change (CEPA, 2005) • BUT do all of them achieve success?

  4. Objective • To investigate the extent to which socio-economic characteristics influence the expenditure pattern. • To compare expenditure behavior of better-off and worse-off migrant households as perceived by the society in terms of budget share allocation for different expenditure categories

  5. Methodology • Sampling framework – List of female migrant households obtained from divisional office from Kiribathgala estate in Rathnapura • Sample size - 52 • Key Informants Evaluation • Stratification of better off and worse off households • Questionnaire Survey - Structured questionnaire

  6. Methodology Contd. • From the questionnaire, • Socio –economic factors • Information on migration process • Information on following expenditure items, • Food • Education • Consumer Durables • Housing • Household utilities

  7. Method of Analysis • Budget shares were calculated using, ABS = Ci∕ INCi • Factors affecting budget share allocation for different expenditure categories were estimated by using Working-Leser Model. Ci /INC = βi + γi (logINC) + λij( Zj)+ ε Ci = Household expenditure on one of expenditure items during migratory period INC = Total income during migratory period Zj = Vector of the household characteristicvariable ε= Error term

  8. General Sample Characteristics Results

  9. Results Contd.

  10. Major reasons for migration Results Contd.

  11. Results Contd.

  12. Results Contd.

  13. Results Contd.

  14. Average Budget Shares on Expenditure for Better-off and Worse-off Households Results Contd.

  15. Regression Results Results Contd. * - Significant at 10% Confidence Interval ** - Significant at 5% Confidence Interval *** - Significant at 1% Confidence Interval

  16. Conclusion • There is a difference between better off and worse off households • The better off households spend less on consumption food and utilities and more on education and consumer durables than worse off households

  17. Thank you

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