By: |
Sylvie Démurger (Université de Lyon, Lyon, F-69007, France ; CNRS, GATE Lyon St Etienne,F-69130 Ecully, France);
Xiaoqian Wang (Université de Lyon, Lyon, F-69007, France ; CNRS, GATE Lyon St Etienne,F-69130 Ecully, France) |
Abstract: |
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. |
Keywords: |
remittances, labour migration, expenditure behaviour, left-behind, propensity score matching, China |
JEL: |
O15 J22 R23 D13 O53 |
Date: |
2016 |
URL: |
http://d.repec.org/n?u=RePEc:gat:wpaper:1601&r=mig |