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

Measuring Remittances using

Multi-Purpose Household Surveys:

the LSMS experience

Gero CarlettoDevelopment Research Group

The World Bank

(with Claudia Rodriguez)

What is an LSMS?

DISTINCTIVE FEATURESMulti-Topic QuestionnaireMultiple InstrumentsConsumption-based welfare measure

Quality ControlDemand-driven

Main objectives of LSMS Surveys

Measuring and Monitoring Welfare

Poverty and policy analysisCapacity buildingMethodological validation (LSMS

IV)Consumption, subjective poverty,

migration, …Income (remittances)

Review: main methodologies

Transfer/remittances moduleHousehold (total transfer; by

recipient) Individual (remitter)

Other incomeHH levelClosed vs. open

Individual migrant’s rostersCombination

Individual level transfers (Nepal 2002/03)

Other Income, HH level (Vietnam 2004)

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

  No. of surveys

With remittance information68

Unable to differentiate bet/w domestic and int'l remittances

19

No remittance information4

Total91

Most survey contain some remittance info …

Large heterogeneity in methods …

Method No. %

Transfers/ Remittances (Indiv. level) 34 50.0

Transfers/ Remittances (HH level) 8 11.8

Individual level (migrant roster) 4 5.9

Other income 19 27.9

Other (social protection) 3 4.4

TOTAL 68 100.0

Some differences in reference periods

No. of surveys %

Last 12 months 49 72.1

Last year 3 4.4

Last 14 months 1 1.5

Last 6 months 3 4.4

Last 3 months 1 1.5

Last 30 days 1 1.5

Multiple 5 7.4

Flexible 5 7.4

Total 68 100.0

Country X, 2004

Country X, 2004 (cont’d)

Country Y, 1997

Any improvements over time?

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

Country Methodology% HHs w/

remittances

Vietnam 1992Individual level remittances 5.0

Vietnam 1997Individual level remittances 6.0

Vietnam 2004Other income (HH level) 5.0

BoP vs. survey estimates

Figure 1. Remittances According to National Accounts and Household Surveys (Millions of US$)

0

500

1,000

1,500

2,000

ALBANIA BULGARIA NICARAGUA JAMAICA GUATEMALA NEPAL

National Accounts Household Survey

Bulgaria MTHS 2007 (Sample: 4,300 HHs)

Current HH

members(1)

Former HH members

(2)

Other income module

(3)

(2)+(3)

HH with migrants 205* 458    

HH with migrants sending remittances 64 223 138 334

Average remittances received by HH (yearly) ???  U$2,186 US$779 US$1,993

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

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???