Abstract:
This study examines the costs and household-level benefits of overseas
migration in Toba Tek Singh, Pakistan. A household survey was conducted to
assess the transaction costs associated with the transfer of remittances and the
sources used to finance overseas migration. We also carry out a propensity-score
matching exercise, which reveals that overseas migration has substantial benefits
as measured by migrants’ consumption levels, their expenditures on health,
education, and vehicles, and the level of household savings. Policy options to
facilitate migration and the transfer of remittances include (i) establishing
technical training institutions to help workers upgrade their skills, (ii) information
campaigns on the migration process and opportunities available, (iii) setting up
institutions to provide loans for potential migrants, (iv) reducing money transfer
costs through formal channels, and (v) building awareness of the Pakistan
Remittance Initiative.
