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

Measuring Remittances using Multi-Purpose Household Surveys: the LSMS experience. Gero Carletto Development Research Group The World Bank (with Claudia Rodriguez). What is an LSMS?. DISTINCTIVE FEATURES Multi-Topic Questionnaire Multiple Instruments Consumption-based welfare measure

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

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  1. Measuring Remittances using Multi-Purpose Household Surveys: the LSMS experience Gero Carletto Development Research Group The World Bank (with Claudia Rodriguez)

  2. What is an LSMS? DISTINCTIVE FEATURES • Multi-Topic Questionnaire • Multiple Instruments • Consumption-based welfare measure • Quality Control • Demand-driven

  3. 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)

  4. Review: main methodologies • Transfer/remittances module • Household (total transfer; by recipient) • Individual (remitter) • Other income • HH level • Closed vs. open • Individual migrant’s rosters • Combination

  5. Individual level transfers (Nepal 2002/03)

  6. Other Income, HH level (Vietnam 2004)

  7. Individual migrant’s rosters • GHANA LSS 2005/06, ALBANIA LSMS 2005, BULGARIA MTHS 2007 • Current household members • Present (past migration) • Absent • Former Household members • Other individuals

  8. Most survey contain some remittance info …

  9. Large heterogeneity in methods …

  10. Some differences in reference periods

  11. Country X, 2004

  12. Country X, 2004 (cont’d)

  13. Country Y, 1997

  14. Any improvements over time? • Albania 2002-2005 • Bulgaria 1995-2007 • BiH 2001-2004 • Ghana 1987-2005 • Nicaragua 1993-2001 • Vietnam 1993-2004

  15. BoP vs. survey estimates

  16. Bulgaria MTHS 2007 (Sample: 4,300 HHs)

  17. 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

  18. Conclusions (cont’d) • 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???

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