Measuring Remittances using Multi-Purpose Household Surveys: the LSMS experience

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Measuring Remittances using Multi-Purpose
Household Surveys the LSMS experience

• Gero Carletto
• Development Research Group
• The World Bank
• (with Claudia Rodriguez)

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What is an LSMS?

• DISTINCTIVE FEATURES
• Multi-Topic Questionnaire
• Multiple Instruments
• Consumption-based welfare measure
• Quality Control
• Demand-driven

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Main objectives of LSMS Surveys

• Measuring and Monitoring Welfare
• Poverty and policy analysis
• Capacity building
• Methodological validation (LSMS IV)
• Consumption, subjective poverty, migration,
• Income (remittances)

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Review main methodologies

• Transfer/remittances module
• Household (total transfer by recipient)
• Individual (remitter)
• Other income
• HH level
• Closed vs. open
• Individual migrants rosters
• Combination

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Individual level transfers (Nepal 2002/03)
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Other Income, HH level (Vietnam 2004)
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Individual migrants rosters

• GHANA LSS 2005/06, ALBANIA LSMS 2005, BULGARIA
  MTHS 2007
• Current household members
• Present (past migration)
• Absent
• Former Household members
• Other individuals

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Most survey contain some remittance info
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Large heterogeneity in methods
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Some differences in reference periods
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Country X, 2004
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Country X, 2004 (contd)
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Country Y, 1997
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Any improvements over time?

• Albania 2002-2005
• Bulgaria 1995-2007
• BiH 2001-2004
• Ghana 1987-2005
• Nicaragua 1993-2001
• Vietnam 1993-2004

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(No Transcript)
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BoP vs. survey estimates
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Bulgaria MTHS 2007 (Sample 4,300 HHs)
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Conclusions

• Most surveys contain info on remittances but
• Little consistency in methodology
• Often different components and groups of
  individuals included
• Ambiguities and double counting
• Large underestimation? Lack of benchmark!
• Some progress, but
• Limited to few countries demand-driven??
• Shortage of best practices

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Conclusions (contd)

• Reference period 12 months (?)
• Importance of placement (?)
• Individual vs. household-level
• HH membership
• Distinguish transfers from abroad
• Multiple modules
• Temporary migrants and returnees info (last 12
  months) on country of work, length of spell
  abroad, occupation, wages
• De-coupling remittances from migration???