Description
This research addresses the question: Is the increase in migration and remittance the main driving force behind the reduction in poverty and the increase in inequality in Nepal? So, our study attempts to answer whether the increased migration and remittance is the main cause of decrease in poverty and increase in inequality in the case of Nepal by examining how differences in prevalence of migration and sources of remittances have diverse impacts on poverty (magnitude) and inequality (magnitude and direction) over time considering remittance as ‘potential substitute’. effects using balanced panel data of 962 households from two rounds of Nepal Living Standards Survey (NLSS) conducted by Central Bureau of Statistics (CBS) of Nepal12, we apply fixed effects model to control of the household fixed effects in contrast to most of the previous studies that had used instrumental variables (IV) and Heckman Selection methods (see, for example, Lokshin, Bontch-Osmolovskim, & Glinskaya, 2007; Zhu & Luo, 2010) to control for the endogeneity of remittance income.
Remittance, poverty and inequality: Micro-simulation for Nepal
This research addresses the question: Is the increase in migration and remittance the main driving force behind the reduction in poverty and the increase in inequality in Nepal? So, our study attempts to answer whether the increased migration and remittance is the main cause of decrease in poverty and increase in inequality in the case of Nepal by examining how differences in prevalence of migration and sources of remittances have diverse impacts on poverty (magnitude) and inequality (magnitude and direction) over time considering remittance as ‘potential substitute’. effects using balanced panel data of 962 households from two rounds of Nepal Living Standards Survey (NLSS) conducted by Central Bureau of Statistics (CBS) of Nepal12, we apply fixed effects model to control of the household fixed effects in contrast to most of the previous studies that had used instrumental variables (IV) and Heckman Selection methods (see, for example, Lokshin, Bontch-Osmolovskim, & Glinskaya, 2007; Zhu & Luo, 2010) to control for the endogeneity of remittance income.