The thesis aims at analyzing the effect of rural-urban migration and remittances on income and poverty of rural households supported by a case study conducted in Southern Ethiopia. The study has also suggested conditions where rural-urban migration is a rational decision for migrant sending households taking to account the main driving forces of rural out-migration.
Using two stage estimations to measure the effect of out-migration, migrant sending families have gained both in terms of total and per capita farm income. In addition, the effect of migration has reduced not only the incidence of poverty but also depth and severity of poverty. Rural out-migration has been a rational decision for migrant sending poor households. In this regard, rural out-migration has been found to be a survival and income diversification strategy.
Finally, the research has been concluded by suggesting some policy recommendations on ways of making rural-urban migration compatible for development
