International Migration, Remittances and Household Development in India: A Comparative Perspective of Northern & Southern Regions

Sandhya R. Mahapatro


In recent years, there is a shift in the pattern of international migration towards the northern states of India while earlier it was primarily dominated by the southern region, especially Kerala. Given the limited flow of international migration, studies till date emphasise more on the casual process of internal migration in the northern states with limited emphasis on the impact of remittances on household wellbeing. The present study is an attempt to understand the impact of remittances on household development in these states measured in the domain of consumption, health, education and investment. To examine this, the expenditure pattern of households, both migrant and non-migrant, was analysed. The paper also analyses the reallocation of spending priorities due to migration and the way it differs from non-migrant households. The study uses the data from 64th round of National Sample Survey, 2007-08. The Ordinary Least Square (OLS) and Tobit model were used to identify the impact of remittance on household wellbeing. The study suggest that in comparison with non-migrants, households receiving remittances spent more on education and healthcare practices of the members. As remittances enhance human capital and income level, policies need to be strengthened more to encourage their flow for the betterment of the people.

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