Migration is the oldest action against poverty. Thus, temporary labour migration from rural to urban areas is a common phenomenon in the developing world. Since 1977, with more open economic policies, there has been a huge trend of young people migrating from rural to urban for industrial employment in Sri Lanka. Export Processing Zones (EPZ) are the main attraction for this temporary labour migration. The sample survey was conducted in Sri Lanka from February to April 2011, covering 377 respondents who have temporarily migrated from rural farm households in 20 urban factories. The paper employs Probit, Tobit analysis in an effort to examine the determinants of remittances and usage of remittances in sending communities. Results demonstrated the remittance accounts for one fifth of household income in the place of origin. The decision to remit regularly depends positively on the monthly income, number of students of the household, and negatively depends on the amount of farmland owned by the household.
URL : https://mpra.ub.uni-muenchen.de/35943/1/MPRA_paper_35943.pdf