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Open Access
Article
Publication date: 1 March 2022

Aktar Hossain and Mohammad Osman Gani

The study aims to examine the impact of migration on household consumption expenditures in Bangladesh.

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Abstract

Purpose

The study aims to examine the impact of migration on household consumption expenditures in Bangladesh.

Design/methodology/approach

The paper uses coarsened exact matching methods to examine the causal impact between migration and household welfare using the dataset on Bangladesh Household Income and Expenditure Survey 2010 on 12,213 households.

Findings

The study reveals that migration has a positive impact on household welfare improvement through increases in their consumption expenditures. Households with migration status are found to spend more on food, non-food (housing, durable goods, fuel, cosmetics, cleaning, transport, clothing, taxes, insurance, recreation) items and medical. However, the authors do not find any evidence of impacts on education expenditures.

Research limitations/implications

The availability of panel data and the use of other variables (e.g. household investment expenditures, household budget allocation for agricultural input expenses, etc.) would have been able to provide vivid results.

Originality/value

This paper adds to the Bangladeshi migration literature by offering a novel empirical assessment of the Bangladeshi migrants and its impact on household welfare by drawing upon a recently published, nationally representative sample of Bangladeshi households.

Details

Asian Journal of Economics and Banking, vol. 6 no. 2
Type: Research Article
ISSN: 2615-9821

Keywords

Open Access
Article
Publication date: 22 March 2023

Thong Le Pham, Nghiem Tan Le, Nhi Nhat Phuong Ho and Thanh Cong Le

This study aims to analyse the consumption inequality between farm and non-farm households in rural Vietnam, using the data from the 2016 Vietnam household living standards survey.

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Abstract

Purpose

This study aims to analyse the consumption inequality between farm and non-farm households in rural Vietnam, using the data from the 2016 Vietnam household living standards survey.

Design/methodology/approach

The present paper applies the “recentered influence functions (RIF)” in “Oaxaca-Blinder (OB)” type decomposition as proposed by Firpo et al. (2018) to allow for the flexible distribution of the outcome variables and the non-randomness of non-farm employment that violates the classical linearity assumption.

Findings

Non-farm households have significantly higher per capita consumption expenditure than farm households for the entire distribution. The gap in expenditure is large at low percentiles and narrowing with higher percentiles. At 10th percentile, the gap is estimated at 27.1%, but it is decreasing to 11.1% at 90th percentile. Most of the gaps are explained by the differences in the observed characteristics between farm and non-farm households such as ethnicity, education, income, internal transmittances and household composition. Non-farm households are endowed with more productive factors that result in higher per capita consumption expenditure.

Originality/value

Gaps in ethnicity and education are found to be key predictors of the inequality in consumption expenditures between farm and non-farm households, then, government policies that are aimed at increasing access to non-farm employment and education for ethnic minorities and for rural poor households are pathways to improve rural household welfare and hence reduce inequality.

Details

Journal of Asian Business and Economic Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2515-964X

Keywords

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