Estimating the Net Effects of Migration and Remittances on Poverty and Inequality: Comparison of Fiji and Tonga

We use original 2005 household survey data from Fiji and Tonga to estimate the impact of migration and remittances on income distribution and measures of poverty, after controlling for selectivity in migration and endogeneity in the relationship between remittances and income. Measures of inequality and poverty based on actual, with-migration income and remittances are then compared with those based on a no-migration scenario. Counterfactual household incomes are estimated, taking account of what the migrant members would have earned had they not migrated. The results are compared with alternative income estimates in which remittances are treated simplistically as exogenous transfers. The positive effects of migration and remittances on poverty alleviation and income distribution are found to be stronger when the more rigorous, counterfactual income estimates are used.migration, remittances, income distribution, poverty, Fiji, Tonga

A Mixed-Motives Model of Private Transfers with Subjectively-Assessed Recipient Need: Evidence from a Poor, Transfer-Dependent Economy

We extend the mixed-motives model of transfer derivatives developed by Cox et al (2004) introducing subjectively-assessed recipient need in place of an absolute income threshold at which the donor’s dominant motive switches from altruism to exchange. This refinement provides a theoretically justifiable threshold amenable to empirical measurement. We test the extended model with customized survey data from Tonga and find evidence consistent with Cox et al in support of altruism for households below the threshold, but, we also find a positive, exchange-motivated relationship for those above the threshold. We conclude that either crowding-out or crowding-in of private transfers can occur when the recipient’s welfare improves, depending on the household’s pre-transfer welfare level. This also has implications for the distributional impact of private transfers and could explain why poverty reduction can be accompanied by increased income inequality.

Assessing the poverty impacts of remittances with alternative counterfactual income estimates

We estimate the impacts of remittances on poverty with survey data from Tonga, a poor Pacific island country highly dependent on international migrants’ remittances. The sensitivity of poverty impacts to estimation method is tested using two methods to estimate migrants’ counterfactual incomes; bootstrap prediction with self-selection testing and propensity score matching. We find consistency between the two methods, both showing a substantial reduction in the incidence and depth of poverty with migration and remittances. With further robustness checks there is strong evidence that the poorest households benefit from migrants’ remittances, and that increased migration opportunities can contribute to poverty alleviation.

Remittances and Subjective Welfare in a Mixed-Motives Model: Evidence from Fiji

To analyze migrants’ remittance motivations we extend the mixed-motives model of private transfers developed by Cox et al (2004), incorporating subjectively-assessed recipient welfare. We test the model with customized survey data from Fiji, finding evidence supportive of altruism for households below a subjective threshold level, indicating that international migrants’ remittances provide important social protection coverage to households where formal social protection systems are lacking.Unlike previous studies, we also find a positive, exchange-motivated relationship for those above the threshold. The conventional linear model applied to the same sample uncovers neither relationship. We conclude that either crowding-out or crowding-in of remittances can occur when recipients’ welfare improves, depending on the household’s pre-transfer welfare level. The net effects of recipients’ welfare improvements on remittances, and the effects of remittances on poverty alleviation and income distribution, are consequently more complex and ambiguous than previous studies suggest.

Wealthy and Healthy in the South Pacific

Objectives- The main aim of this paper is to analyse the relationship between socio-economic status and health status at the household level in Fiji, a developing country in the South Pacific, based on original household survey data compiled by the authors Method- We exploit the geographic conditions of Viti Levu, the relatively small main island of Fiji, to isolate the effects of household wealth on health. For households on this island physical distance is not a significant impediment for access to health care and other publicly-provided services. We use a constructed index of household wealth in place of the more commonly used income measure of socio-economic status. To control for reverse causality and other possible sources of endogeneity we use an Instrumental Variable strategy in the regression analysis. Findings- We find that a household’s socio-economic status, as measured by a constructed wealth index, has a substantial impact on the household’s health status. We estimate that if a household's wealth increased from the minimum to the maximum level, this would decrease its probability of being afflicted by an incapacitating illness by almost 50 per cent. Conclusions- Health outcomes from existing health services can therefore be improved by raising the economic well-being of poor households. Conversely, the provision of additional health services alone may not necessarily improve health outcomes for the poorest.

Socioeconomic Status and Health Outcomes in a Developing Country

While the relationship between socioeconomic status (SES) and health is well documented for developed countries, less evidence has been presented for developing countries. The aim of this paper is to analyse this relationship at the household level for Fiji, a developing country in the South Pacific, using original household survey data. To allow for the endogeneity of SES status in the household health production function we utilize a simultaneous equation approach where estimates are achieved by full information maximum likelihood. By restricting our sample to one, relatively small island, and including area and district hospital effects, physical geography effects are unpacked from income effects. We measure SES, as permanent income which is constructed using principal components analysis. An alternative specification considers transitory household income. We find that a 1% increase in wealth (our measure of permanent income) would lead to a 15% decrease in the probability of an incapacitating illness occurring intra-household. While presence of a strong causal relationship indicates that relatively small improvements in SES status can significantly improve health at the household level, it is argued that the design of appropriate policy would also require an understanding of the various mechanisms through which the relationship operates.

A mixed-motives model of private transfers with subjectively-assessed recipient need: Evidence from a poor, transfer-dependent economy

We extend the mixed-motives model of transfer derivatives developed by Cox et al (2004) introducing subjectively-assessed recipient need in place of an absolute income threshold at which the donor’s dominant motive switches from altruism to exchange. This refinement provides a theoretically justifiable threshold amenable to empirical measurement. We test the extended model with customized survey data from Tonga and find evidence consistent with Cox et al in support of altruism for households below the threshold, but, we also find a positive, exchange-motivated relationship for those above the threshold. We conclude that either crowding-out or crowding-in of private transfers can occur when the recipient’s welfare improves, depending on the household’s pre-transfer welfare level. This also has implications for the distributional impact of private transfers and could explain why poverty reduction can be accompanied by increased income inequality. JEL classification: D13; D64; F24; H55; I30; O15

Accelerating Maternal and Child Health Gains in Papua New Guinea

Many priority countries in the countdown to the millennium development goals deadline are lagging in progress towards maternal and child health (MCH) targets. Papua New Guinea (PNG) is one such country beset by challenges of geographical inaccessibility, inequity and health system weakness. Several countries, however, have made progress through focused initiatives which align with the burden of disease and overcome specific inequities. This study identifies the potential impact on maternal and child mortality through increased coverage of prioritised interventions within the PNG health system.The burden of disease and health system environment of PNG was documented to inform prioritised MCH interventions at community, outreach, and clinical levels. Potential reductions in maternal and child mortality through increased intervention coverage to close the geographical equity gap were estimated with the lives saved tool.A set community-level interventions, with highest feasibility, would yield significant reductions in newborn and child mortality. Adding the outreach group delivers gains for maternal mortality, particularly through family planning. The clinical services group of interventions demands greater investment but are essential to reach MCH targets. Cumulatively, the increased coverage is estimated to reduce the rates of under-five mortality by 19 %, neonatal mortality by 26 %, maternal mortality ratio by 10 % and maternal mortality by 33 %.Modest investments in health systems focused on disadvantaged populations can accelerate progress in maternal and child survival even in fragile health systems like PNG. The critical approach may be to target interventions and implementation appropriately to the sensitive context of lagging countries

Remittances and subjective welfare in a mixed-motives model: Evidence from Fiji

To analyze migrants’ remittance motivations we extend the mixed-motives model of private transfers developed by Cox et al (2004), incorporating subjectively-assessed recipient welfare. We test the model with customized survey data from Fiji, finding evidence supportive of altruism for households below a subjective threshold level, indicating that international migrants’ remittances provide important social protection coverage to households where formal social protection systems are lacking.Unlike previous studies, we also find a positive, exchange-motivated relationship for those above the threshold. The conventional linear model applied to the same sample uncovers neither relationship. We conclude that either crowding-out or crowding-in of remittances can occur when recipients’ welfare improves, depending on the household’s pre-transfer welfare level. The net effects of recipients’ welfare improvements on remittances, and the effects of remittances on poverty alleviation and income distribution, are consequently more complex and ambiguous than previous studies suggest

Estudio exploratorio de los suelos asociados al crecimiento de ciruela del pacifico (Spondias dulcis) en la vereda Zacarías corregimiento No. 8 Buenaventura D.E Valle del Cauca.

Las comunidades asentadas en la región del pacífico trabajan una agricultura de subsistencia dentro de huertos caseros, un sistema agroforestal caracterizado por tener diferentes especies tanto agrícolas, forestales y frutales que pueden ser promisorios como la ciruela del pacifico (Spondias dulcis), se reporta poca información de los suelos asociados a su crecimiento. El objetivo de esta investigación fue realizar un estudio exploratorio de los suelos asociados al crecimiento del árbol frutal ciruela del pacifico (Spondias dulcis), se trabajaron tres huertos caseros ubicados en la vereda Zacarías del corregimiento No. 8 de Buenaventura, Valle del Cauca y en los cuales se encontraban árboles de ciruela del pacífico. Se realizó una metodología de investigación de acción participativa (IAP), se tomaron muestras de suelos para analizar propiedades químicas y físicas, a partir de los resultados se obtuvo un análisis fisicoquímico de diagnóstico de su fertilidad, que puede ser una base para establecer las recomendaciones sobre la fertilización de suelos asociados al crecimiento de Spondias dulcis de la zona de estudio.The communities settled in the Pacific region work subsistence agriculture within home gardens, an agroforestry system characterized by having different agricultural, forest and fruit species that can be promising such as the Pacific plum (Spondias dulcis), little information is reported of the soils associated with its growth. The objective of this research was to carry out an exploratory study of the soils associated with the growth of the Pacific plum fruit tree (Spondias dulcis), three homemade orchards were located in the Zacarías village of corregimiento No. 8 of Buenaventura, Valle del Cauca and in the which were plum trees of the Pacific. A participatory action research (IAP) methodology was carried out, there were soil samples taken to analyze their chemical and physical properties, from the results a physicochemical analysis of their fertility diagnosis was obtained, which can be a basis for establishing the recommendations on soil fertilization associated with the growth of Spondias dulcis in the study area