Impacts of migration on poverty reduction in Vietnam: A household level study

Abstract

This study investigates impacts of migration through remittances on poverty reduction in Vietnam by using the two most recent Vietnam Household Living Standard Surveys in 2014 and 2016. Results of a fixed-effect logit and a fractional logit model show that although both internal remittances and international remittances increase per capita income only internal remittances have positive impacts on poverty incidence and poverty intensity. In addition, by testing impacts of remittances on pushing a household jump above the poverty line and its effects on the depth of poverty, this study has revealed poverty reduction effect of remittances more fully. Based on the findings the study suggests that it is important to acknowledge the benefits of internal migration. For the purpose of poverty alleviation, policies that attract remittances should be given greater attention.