Remittances and Expenditure Patterns of the Left Behinds in Rural China
Author : Sylvie Démurger, Xiaoqian Wang | 2016
Published By: IZA
This paper investigates how private transfers from internal migration in China affect the
expenditure behaviour of families left behind in rural areas. Using data from the Rural-Urban Migration in China (RUMiC) survey, we assess the impact of remittances sent to rural
households on consumption-type and investment-type expenditures. We apply propensity
score matching to account for the selection of households into receiving remittances, and
estimate average treatment effects on the treated. We find that remittances supplement
income in rural China and lead to increased consumption rather than increased investment.
Moreover, we find evidence of a strong negative impact on education expenditures, which
could be detrimental to sustaining investment in human capital in poor rural areas in China.
URL : http://ftp.iza.org/dp9640.pdf