Migration and Remittances: Impact on Financial Behaviour of Families Left Behind in Sri Lanka

Migration and remittances have a huge capacity to improve the socioeconomic position of households. Nevertheless, achievement of goals and aspirations of migration are highly linked to the behavior of migrant as well as that of the left behind family. Nevertheless, existing literature on migration, remittance and their impact have often overlooked the critical connection.   To address this lacuna in literature this paper explores the financial behavior of migrant households with the aim to discern causal impact of migration on savings and borrowing behavior of members in migrant household. The study uses data from the Household Income and Expenditure Survey (HIES) 2016, conducted by the Department of Census and Statistics (DCS) in Sri Lanka, using Distributional Analysis, Propensity Score Matching (PSM) and Three Stage Least Squares (3SLS) methodologies.

Research team

Bilesha Weeraratne
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Sri Lanka Bureau of Foreign Employment (SLBFE) & IPS