Does migration matter for household welfare in Bangladesh?

Abstract

This paper explores the impact of international migration on household welfare in Bangladesh based on the household income and expenditure survey 2010. An asset index was constructed to measure the long-run welfare impact of migration using principal component analysis. The findings of the study indicate that the households with a migrant member have a significantly higher asset score compared to the non-migrant. The migrant households also have a lower expenditure share on food and a higher calorie intake per capita suggesting they are less poor compared to non-migrants. Besides, the study found robust evidence that the families having a migrant in a lucrative destination are well-off than those with a migrant in a less desirable destination. The overall findings suggest that the welfare of the households not only depends on the households’ migration status but also their destination choices.