The Changing Landscape of International Migration : Evidence from Rural Households in Bangladesh, 2000-2014

Using unique data on rural households in Bangladesh for the period 2000–2014, this study aims to explore whether the socio-economic characteristics of the beneficiary households of international migration have changed over time. Our analysis shows that household education and asset levels are important determinants of international migration, particularly in earlier years. We also find that less educated and less wealthy households did take part in migration, albeit slowly, in recent time. In addition, social network facilitating migration within community is a key contributor to migration, but its predictive power declines over time. These findings suggest that entry barriers to international migration, resulting from paucity of financial, human and social capital endowment, have decreased over time. We also explore possible causes for such changes, including persistent demand for low-skilled workers in major destination countries, increasing domestic demand for educated workers, and increasing access to loans and grants to finance migration.This work was supported by the JSPS KAKENHI Grant Number JP15J11506.http://www.grips.ac.jp/list/jp/facultyinfo/otsuka_keijiro

The Changing Landscape of International Migration: Evidence from Rural Households in Bangladesh, 2000-2014

While international migration is increasingly recognized as a key driver of development, evidence suggests that the poor cannot readily take part in international migration due to the high placement cost. Using unique data on rural households in Bangladesh for the period 2000–2014, this study explores whether the socio-economic characteristics of the beneficiary households of international migration have changed over time. Our analysis shows that household education and asset levels are important determinants of international migration, particularly in earlier years. We also find that less educated and less wealthy households did take part in migration, albeit slowly, in recent time. In addition, social network facilitating migration within community is a key contributor to migration, but its predictive power declines over time. These findings suggest that entry barriers to international migration, resulting from paucity of financial, human and social capital endowment, have decreased over time. We also explore possible causes for such changes, including persistent demand for low-skilled workers in major destination countries, increasing domestic demand for educated workers, and increasing access to loans and grants to finance migration

The Changing Landscape of International Migration: Evidence from Rural Households in Bangladesh, 2000-2014

While international migration is increasingly recognized as a key driver of development, evidence suggests that the poor cannot readily take part in international migration due to the high placement cost. Using unique data on rural households in Bangladesh for the period 2000–2014, this study explores whether the socio-economic characteristics of the beneficiary households of international migration have changed over time. Our analysis shows that household education and asset levels are important determinants of international migration, particularly in earlier years. We also find that less educated and less wealthy households did take part in migration, albeit slowly, in recent time. In addition, social network facilitating migration within community is a key contributor to migration, but its predictive power declines over time. These findings suggest that entry barriers to international migration, resulting from paucity of financial, human and social capital endowment, have decreased over time. We also explore possible causes for such changes, including persistent demand for low-skilled workers in major destination countries, increasing domestic demand for educated workers, and increasing access to loans and grants to finance migration

International migration in Asia and the Pacific determinants and role of economic integration

International migration is an essential element of economic integration. Yet, the intraregional movement of people and labor in Asia and the Pacific has stagnated in recent years even as the flow of goods, services, and investment have steadily risen. This paper examines key factors driving the movement of people from and within the region using bilateral international migrant stock data. Our analysis shows that commonly known determinants such as income differences; population size; and political, geographical, and cultural proximities between the migrant source and destination countries are associated with greater movement, along with the growing share of older population in destination economies and the similarities in the level of educational attainment. The paper also finds that crossborder migration is affected, in varied directions, by the degree of economic integration between the source and destination economies, especially through bilateral trade and value chain links. The offshoring of production - and hence jobs and other economic opportunities - to migrant source countries suppresses outmigration, but the expected rise in the source country income will eventually promote migration by relaxing financial constraints

Demographic change, technological advances, and growth: A cross-country analysis

This paper revisits the impact of population aging on economic growth. In order to understand the impact of population aging on economic growth, it is important to consider the changes in the entire age distribution of demography. Our empirical analysis indicates that a change in age distribution that increases the proportion of older people while reducing the working-age population lowers economic growth. We also investigate the effect of technological advances on the relation between population aging and economic growth, using four plausible proxies of technological advancement: life expectancy, labor productivity, automation, and total factor productivity. We find that increasing life expectancy and labor productivity benefit old age groups as they likely help older age groups contribute more positively to future growth. More automation also helps improve productivity of old age groups but in a different way. When robot density increases, old age groups become less disadvantaged compared to the young. Lastly, technological adoption enhances the growth contribution of productive age groups from the 30s to 60s when one compares low with high total factor productivity scenarios

Evaluating the impact of remittances on human capital investment in the Kyrgyz Republic

Remittances from overseas can encourage human capital investment and improve educational outcomes in developing countries. Empirical studies, however, have shown mixed evidence at best. This paper uses a 5-year panel dataset that tracks the same 3,000 households and 8,000 individuals through time in all seven regions of the Kyrgyz Republic to examine the impact of remittances on the human capital formation of school-age children. After correcting for selection bias and other potential endogeneities with instrumental variables and fixed effects regressions, remittances are found to have negative impacts on human capital investment and educational achievement. The negative effects can be attributed in part to recipients' increased expenditure on durable goods and extended hours of child labor on farm work as a compensation for missing adult labor. Our finding calls for actions that mitigate the negative effects and incentivize families to spend remittances on education, including financial literacy education, better monitoring of farm labor hours of school-age children, and targeted investment to improve the quality of education services in the Kyrgyz Republic

Blateral remittance inflows to Asia and the Pacific: Countercyclicality and motivations to remit

This paper examines the countercyclicality of remittance inflows to the countries in Asia and the Pacific. It also aims to identify major determinants of remittances using gravity models of bilateral remittances. We find that bilateral remittance inflows are countercyclical against the business cycle of a remittance-receiving country relative to a sending country. The degree to which remittances are countercyclical is found to vary significantly by subregion: Central Asia and Southeast Asia, including many remittance-dependent countries, show stronger countercyclicality than other subregions. The estimated models suggest that migrant stock is a top determinant of remittances, and that an increase in bilateral remittances is explained by a higher occurrence of disasters caused by natural hazards in receiving countries, appreciation of a receiving country's currency value against that of the sending country, lower interest rate differential (receiver-sender), greater capital account openness and higher political instability, and lower costs of remittances. This suggests that an altruistic motivation to remit prevails in the region. We also find that the countercyclicality of remittances rises when recipient countries experience more frequent disasters, a higher old-age dependence ratio, less stringent capital control, and stable political climate

An Ex-Ante Assessment on Poverty and Cash Transfer Benefits in Viet Nam under the Covid-19 Pandemic

Using household data from the Vietnam Household Living Standard Survey (VHLSS) and the sector-specific growth and remittance inflow projections by Asian Development Bank (ADB), this study first estimated the COVID-19 pandemic on income and poverty status of the Vietnamese households, and then simulated the impact of cash transfer programs by the government of Vietnam on the income and poverty status of households. Our simulations suggest that COVID-19 leads to substantial reduction in household's per-capita income, and results in additional 1.7 million poor people. The cash transfers would be pro-poor and helps bring about 1.2 million people out of poverty. The transfers would be particularly pro-poor for ethnic minority and rural persons and those working in severely affected economic sectors. Based on the findings, we discussed various policies to implement appropriate measures to help households cope with adverse economic impact of COVID-19