Arbeitspapier

Remittances and Expenditure Patterns of the Left Behinds in Rural China

This paper investigates how private transfers from internal migration in China affect the expenditure behaviour of families left behind in rural areas. Using data from the Rural-Urban Migration in China (RUMiC) survey, we assess the impact of remittances sent to rural households on consumption-type and investment-type expenditures. We apply propensity score matching to account for the selection of households into receiving remittances, and estimate average treatment effects on the treated. We find that remittances supplement income in rural China and lead to increased consumption rather than increased investment. Moreover, we find evidence of a strong negative impact on education expenditures, which could be detrimental to sustaining investment in human capital in poor rural areas in China.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 9640

Classification
Wirtschaft
Economic Development: Human Resources; Human Development; Income Distribution; Migration
Time Allocation and Labor Supply
Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
Household Production and Intrahousehold Allocation
Economywide Country Studies: Asia including Middle East
Subject
remittances
labour migration
expenditure behaviour
left-behind
China
propensity score matching

Event
Geistige Schöpfung
(who)
Démurger, Sylvie
Wang, Xiaoqian
Event
Veröffentlichung
(who)
Institute for the Study of Labor (IZA)
(where)
Bonn
(when)
2016

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Démurger, Sylvie
  • Wang, Xiaoqian
  • Institute for the Study of Labor (IZA)

Time of origin

  • 2016

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