Impact of Remittances on Spending Behavior and Work Choices in Thai Households: A Quasi-Experimental Study
Article Sidebar
Main Article Content
Abstract
Remittances from migrants are essential for left-behind families in impoverished areas of developing countries. This paper uses data from the Thailand Household Socio-Economic Survey 2019 (HSES 2019) to quantitatively assess the impact of remittances on household spending behavior and their choice of labor force participation via a propensity score matching technique. An attempt is made to examine whether the outcome varies with the household head’s gender. It is estimated that 2.1 million households, 10% of Thai households, have received remittances from migrants in 2019. Remittance-receiving households reduce spending share on food and allocate the funds toward spending related to durable goods, healthcare, and education. The impact of remittances on productive consumption is more pronounced among female-headed households than male-headed households. Moreover, remittances slightly reduce the labor force participation of female household heads but have no impact on the labor force participation of male household heads. Fiscal policy that encourages sending remittances to families left behind should be established, along with measures that promote international migration through formal channels.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
References
• Abate, G. T., Rashid, S., Borzaga, C., & Getnet, K. (2016). Rural finance and agricultural technology adoption in Ethiopia: Does the institutional design of lending organizations matter? World Development, 84, 235–253. https://doi.org/10.1016/j.worlddev.2016.03.003
• Ang, A., Sugiyarto, G., & Jha, S. (2009). Remittances and household behavior in the Philippines (ADB Economics Working Paper Series No. 188). Asian Development Bank. https://EconPapers.repec.org/RePEc:ris:adbewp:0188
• Asiedu, E., & Chimbar, N. (2020). Impact of remittances on male and female labor force participation patterns in Africa: Quasi-experimental evidence from Ghana. Review of Development Economics, 24(3), 1009–1026. https://doi.org/10.1111/rode.12668
• Azizi, S. (2021). The impacts of workers’ remittances on poverty and inequality in developing countries. Empirical Economics, 60(2), 969–991. https://doi.org/10.1007/s00181-019-01764-8
• Basu, B., & Maitra, P. (2020). Intra-household bargaining power and household expenditure allocation: Evidence from Iran. Review of Development Economics, 24(3), 606–627. https://doi.org/10.1111/rode.12636
• Chea, V., & Wongboonsin, P. (2019). Do remittances increase household investment in education? Evidence from Cambodia during and after the global financial crisis. Journal of Population and Social Studies, 28(1), 1–21. https://so03.tci-thaijo.org/index.php/jpss/article/view/173230
• Clément, M. (2011). Remittances and household expenditure patterns in Tajikistan: A propensity score matching analysis. Asian Development Review, 28(02), 58–87. https://doi.org/10.1142/S0116110511500107
• Durongkaveroj, W. (2024, February 09). Thailand’s post-pandemic economic recovery still trailing behind. East Asia Forum. https://doi.org/10.59425/eabc.1707472800
• Habib, H. (2023). Remittances and labor supply: Evidence from Tunisia. Journal of the Knowledge Economy, 14(2), 1870–1899. https://doi.org/10.1007/s13132-022-00952-9
• Hildebrandt, N., McKenzie, D. J., Esquivel, G., & Schargrodsky, E. (2005). The effects of migration on child health in Mexico [with Comments]. Economía, 6(1), 257–289. http://www.jstor.org/stable/20065490
• International Monetary Fund, A., & Pacific, D. (2020). Nepal: Selected Issues. IMF Staff Country Reports, 2020(097), Article A001. https://doi.org/10.5089/9781513539768.002.A001
• Jones, H., & Kittisuksathit, S. (2003). International labour migration and quality of life: findings from rural Thailand. International Journal of Population Geography, 9(6), 517–530. https://doi.org/10.1002/ijpg.306
• Jones, H., & Pardthaisong, T. (1999). The impact of overseas labour migration on rural Thailand: Regional, community and individual dimensions. Journal of Rural Studies, 15(1), 35–47. https://doi.org/10.1016/S0743-0167(98)00052-7
• Leamcharaskul, N., & Boonyamanond, S. (2024). The role of remittances and other external factors on poverty dynamic among Thai households: Evidence from a panel data survey 2007–2017. Journal of Population and Social Studies, 32, 531–553. https://so03.tci-thaijo.org/index.php/jpss/article/view/272039
• Mahapatro, S., Bailey, A., James, K. S., & Hutter, I. (2017). Remittances and household expenditure patterns in India and selected states. Migration and Development, 6(1), 83–101. https://doi.org/10.1080/21632324.2015.1044316
• Manich, P. (2022). The impact of remittances on human capital investment in Thai households (Master’s thesis, Thammasat University). TU Digital Collections. https://doi.org/10.14457/TU.the.2022.1139
• Mishra, K., Kondratjeva, O., & Shively, G. E. (2022). Do remittances reshape household expenditures? Evidence from Nepal. World Development, 157, Article 105926. https://doi.org/10.1016/j.worlddev.2022.105926
• Murakami, E., Yamada, E., & Sioson, E. P. (2021). The impact of migration and remittances on labor supply in Tajikistan. Journal of Asian Economics, 73, Article 101268. https://doi.org/10.1016/j.asieco.2020.101268
• Nasri, A., Carrion, C., Zhang, L., & Baghaei, B. (2020). Using propensity score matching technique to address self-selection in transit-oriented development (TOD) areas. Transportation, 47(1), 359–371. https://doi.org/10.1007/s11116-018-9887-2
• National Statistical Office of Thailand. (2001–2023). Samruat phawa setthakit lae sangkhom khong khrua ruan [The household socio-economic survey]. https://www.nso.go.th/nsoweb/nso/survey_detail/qC?set_lang=th
• Osaki, K. (2003). Migrant remittances in Thailand: Economic necessity or social norm? Journal of Population Research, 20(2), 203–222. https://doi.org/10.1007/BF03031852
• Pickbourn, L. (2016). Remittances and household expenditures on education in Ghana's Northern Region: Why gender matters. Feminist Economics, 22(3), 74–100. https://doi.org/10.1080/13545701.2015.1107681
• Rapoport, H., & Docquier, F. (2006). The economics of migrants' remittances. In S.-C. Kolm & J. M. Ythier (Eds.), Handbook of the Economics of Giving, Altruism and Reciprocity (Vol. 2, pp. 1135–1198). Elsevier.
• Rigg, J., Promphaking, B., & Le Mare, A. (2014). Personalizing the middle-income trap: An inter-generational migrant view from rural Thailand. World Development, 59, 184–198. https://doi.org/10.1016/j.worlddev.2014.01.031
• Samaratunge, R., Kumara, A. S., & Abeysekera, L. (2020). Where do remittances go in household consumption? Empirical evidence from Sri Lanka-wide micro-data. International Migration, 58(5), 194–219. https://doi.org/10.1111/imig.12697
• Tangtipongkul, K., & Khiev, V. (2019). The effect of remittance on economic growth in Cambodia. Journal of Population and Social Studies, 27(3), 232–246. https://so03.tci-thaijo.org/index.php/jpss/article/view/171830
• Thapa, S., & Acharya, S. (2017). Remittances and household expenditure in Nepal: Evidence from cross-section data. Economies, 5(2), Article 16. https://doi.org/10.3390/economies5020016
• United Nations. (2019, August 25). Thailand Migration Report 2019. https://thailand.un.org/en/50831-thailand-migration-report-2019
• Vanwey, L. K. (2004). Altruistic and contractual remittances between male and female migrants and households in rural Thailand. Demography, 41(4), 739–756. http://www.jstor.org/stable/1515228
• Wang, D., Hagedorn, A., & Chi, G. (2021). Remittances and household spending strategies: Evidence from the Life in Kyrgyzstan Study, 2011–2013. Journal of Ethnic and Migration Studies, 47(13), 3015–3036. https://doi.org/10.1080/1369183X.2019.1683442
• Wongmonta, S. (2017). The determinants of migrant remittance behavior: A Thai case study. Thailand and The World Economy, 35(2), 39–63. https://so05.tci-thaijo.org/index.php/TER/article/view/137985
• World Bank Group. (2020, June). Thailand Economic Monitor: Thailand in the Time of COVID-19. https://documents1.worldbank.org/curated/en/456171593190431246/pdf/Thailand-Economic-Monitor-Thailand-in-the-Time-of-COVID-19.pdf
• World Bank Group. (2023, December 18). Remittance flows grow in 2023 but at a slower pace: Migration and development brief. https://www.worldbank.org/en/news/press-release/2023/12/18/remittance-flows-grow-2023-slower-pace-migration-development-brief
• World Bank Group. (2024). Personal remittances, received (current US$) - Low & middle income. https://data.worldbank.org/indicator/BX.TRF.PWKR.CD.DT?locations=XO
• World Health Organization. (2023). Service coverage indicators [Data set]. https://apps.who.int/gho/data/view.main.INDEXOFESSENTIALSERVICECOVERAGEv?lang=en
• Yokying, P., & Floro, M. S. (2020). Parents’ labour force participation and children’s involvement in work activities: evidence from Thailand. Oxford Development Studies, 48(3), 287–303. https://doi.org/10.1080/13600818.2020.1792431
• Yokying, P., Saksena, S., & Fox, J. (2023). Impacts of migration on time allocation of those who remain at home in rural Nepal. Journal of International Development, 35(7), 2067–2106. https://doi.org/10.1002/jid.3765