Journal
CHINA ECONOMIC REVIEW
Volume 37, Issue -, Pages 177-190Publisher
ELSEVIER SCIENCE INC
DOI: 10.1016/j.chieco.2015.12.002
Keywords
Labor migration; Expenditure behavior; Left-behind; Propensity score matching; China
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Funding
- Agence Nationale de la Recherche (ANR) research program [ANR-14-ORAR-0002-01]
- ESRC [ES/L015684/1] Funding Source: UKRI
- Agence Nationale de la Recherche (ANR) [ANR-14-ORAR-0002] Funding Source: Agence Nationale de la Recherche (ANR)
- Economic and Social Research Council [ES/L015684/1] Funding Source: researchfish
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This paper investigates how private transfers from internal migration in China affect the expenditure behavior 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. (C) 2015 Elsevier Inc. All rights reserved.
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