Transcript Use of Household Surveys to Measure International Migrant Remittances Jason Schachter, Statistician United Nations Economic Commission for Europe Towards better Evidence on Migration and Development.

Use of Household Surveys to
Measure International Migrant
Remittances
Jason Schachter, Statistician
United Nations Economic Commission for Europe
Towards better Evidence on Migration and Development in Eastern Europe
and Central Asia, Capacity-building Workshop on Migration Statistics
Almaty, Kazakhstan, 1Remices
November, 2013
Suitland MD, January 14-5, 2008
Jason Schachter - UNECE Statistical Division

Slide 1
Introduction





International remittances received by developing
countries to reach US$ 414 billion in 2013 (US$ 167
billion in 2005).
Migrant remittances are a source of foreign currency
exchange, enabling countries to acquire imports or
pay off debt.
Remittances reduce poverty and can contribute to
economic development in migrant-sending
countries.
Quality of current remittance data could be improved
Increase in the number of household surveys used
to measure remittances.
Jason Schachter - UNECE Statistical Division
Slide 2
BOP Definition of Remittances

Definitions revised by IMF in 2007 (TSG, Luxembourg
group) -BMP6•




Concept of “migrant” no longer relevant, as definitions based on
residency (at least 12 months in household)
Categories
Personal Transfers (all current transfers in cash or in
kind between resident and non-resident households)
Employee Compensation (transfers between nonresident households)
Personal Remittances (first two, plus capital transfers
between households –total net worth of households
transferred at initial time of migration-)
Total Remittances: Personal remittances plus social
benefits (social insurance and assistance)
Jason Schachter - UNECE Statistical Division
Slide 3
BOP Definitions, Cont.




Recommended reporting of bi-lateral flows
Independent of relationship between senderreceiver, so family and non-family transfers
included.
Except for personal transfer category,
definitions are supplementary, thus countries are
encouraged (not required) to complete.
Remittances can be:
Monetary: Cash, money transfers, cheques, etc.
In-Kind: Goods, donations, payments made on
behalf of others, etc.
Jason Schachter - UNECE Statistical Division
Slide 4
Some Old Limitations of “Balance of
Payment" Remittance Data






Inability of banks to distinguish between short-and longterm migrants (one-year residency)
Inconsistent recording and reporting practices of BOP
between, and even within, countries over time
Inability to identify flows (where remittances go (WB
models))
Small transactions often go unrecorded by banks
Miss transactions made at non-bank locations (e.g.
money transfer centres)
Lack of information about "informal" (e.g. hand-carried)
or “in-kind” (e.g. goods) remittances
Jason Schachter - UNECE Statistical Division
Slide 5
How Can Household Surveys Help
Measure Remittances?



Improve measurement of the size of
remittances by collecting information
missing from current BOP methods (i.e.
informal and “in-kind” remittances, etc.)
Measurement of the characteristics of
remittance senders and receivers.
Measurement of the impact of remittances
(e.g. on poverty)
Jason Schachter - UNECE Statistical Division
Slide 6
Potential Drawbacks to Household Surveys






Coverage: Many sampling frames miss foreigners
and/or GQ populations (which often house
temporary migrants)
Large sample needed to identify flows
Hard to find population: Insufficient number of
cases, particularly in destination countries, since
using a sample of the population to measure a
relatively rare event (migration).
Non-response (unit and item) particularly for
“illegal” migrants and sensitive questions
Data quality (question sensitivity): Data recall and
accuracy, especially for money-related information
Cost of conducting (and sustaining) household
surveys
Jason Schachter - UNECE Statistical Division
Slide 7
Household Surveys Measuring
Remittances



Several countries include remittance
questions on national household surveys.
Census: e.g. Guam, Dominican Republic,
Palau, Tuvalu, St. Lucia (just a few
questions)
Detailed remittance questions included as
modules on several national household
surveys, as well as internationally
coordinated surveys
Jason Schachter - UNECE Statistical Division
Slide 8
Examples of Internationally Coordinated
Surveys

WB Living Standards and Measurement Study
(LSMS) Surveys (e.g. Tajikistan 2009)
•



World Bank Ad-Hoc Surveys (e.g. Survey of African Diaspora
in Belgium; African Migration Project, etc.)
ILO Labour Migration Surveys (e.g. Armenia,
Moldova, Ukraine)
IOM sponsored surveys (Albania, Moldova,
Serbia and Montenegro, Tajikistan, and
Ukraine)
Asian Development Bank (2007: Armenia,
Azerbaijan, Kyrgyzstan, Tajikistan)
Jason Schachter - UNECE Statistical Division
Slide 9
Some Recent Regional Examples




Tajikistan 2009 LSMS (1,500 households)
Armenia 2006 Migration Survey (2,000 hhlds);
2011 Integrated Living Conditions Survey
(7,872 hhlds); (2013 Migration Survey)
Ukraine 2012 Labour Migration Survey
(27,800 hhlds)
Moldova 2012 LFS survey migration module
(Q4: 16,000 households)
Jason Schachter - UNECE Statistical Division
Slide 10
Tajikistan (LSMS) Module 2:
Migration

Individuals 14 and older currently not
residing in household because working
abroad (current migrants)
•
Did they remit to household, in cash, past
12 months?

•
Did they remit in-kind? (not defined)

•
Value of all remittances in cash sent past 12
months on average per month
Value of all remittances in-kind sent
Main method to remit cash or in-kind (12
months)
Jason Schachter - UNECE Statistical Division
Slide 11
Module 7: Transfers and Social
Assistance

During past 12 months has your household or
any members received any money or goods
from person who do not live in household (e.g.
relatives living elsewhere…)…
•
Name/relationship to head of household
• Where (donor) lives & since when lived there
• How much money received past 12 months,
• Main reason for assistance
• Food or other goods (past 12 months)
• Approximate cash value of food/goods
November 6, 2015
Jason Schachter - UNECE Statistical Division
Slide 12
Module 7, continued.

During past 12 months has your household or any
members made any gift (cash or in-kind) to
persons who do not live in this household…(for
example, relatives living elsewhere…)
•
•
•
•
•
Name/relationship to household head
How much money given/sent past 12 months
Main reason for assistance
Food/goods & value in past 12 months
(Nothing about where live)
Jason Schachter - UNECE Statistical Division
Slide 13
Armenia: 2006 Migration
Survey

Return migrants (3 month or more, since
1990) (16 and over)


While living abroad, ever send money or
goods to friends or relatives in Armenia?
Remittances received from houshold
members currently residing abroad/other
persons living abroad
November 6, 2015
Jason Schachter - UNECE Statistical Division
Slide 14
 Relationship
to head of household
 Country of residence/when moved/if work
 Ever send money home
 First/last time sent money
 Frequency of sending (past 12 months)
 Total value of money received past 12
months
 Methods used most frequently to send
 Use of money
 Goods from abroad (past 12 months)
–Item, value, method to send
November 6, 2015
Jason Schachter - UNECE Statistical Division
Slide 15
Integrated Living Conditions
Survey (2011)

Houshold member who migrated or
returned since 2008 (internal and
international,15 years and older)
•
Did (name) send remittances to immediate
family, in cash or in-kind, at any point during
the past 12 months (immediate family/
relatives/friends).
November 6, 2015
Jason Schachter - UNECE Statistical Division
Slide 16
H. Monetary and Commodity
Flows between Households






Did household send/receive money or goods
to/from an absent household member or any
other person during last 12 months?
Name/Where lives
Regularity, amount transferred past 12 months
How transfered (bank, post, other)
Purpose of transfered money
Total value of food or goods transfered past 12
months
November 6, 2015
Jason Schachter - UNECE Statistical Division
Slide 17
2013 Integrated Survey of the
Migration of the RA Population
2007-2013


RA National Statistical Service, State
Migration Service (Russian-Armenian
University),IOM
Remittance and Financial Prosperity (7b)
•
Financial situation improve over past 5 years (if
worse: reduction in remittances), importance of
current sources received from abroad
• If sent money/goods abroad, frequency, total sum
past 12 months
• If received money from abroad past 12 months
November 6, 2015
Jason Schachter - UNECE Statistical Division
Slide 18
Continued

Money received from abroad past 12
months (all sources)
•
Total amount
• Method to send
• Use of money received
• Goods received past 12 months

Type
 Value
 Means of sending
November 6, 2015
Jason Schachter - UNECE Statistical Division
Slide 19
Ukraine: 2012 Labour Migration
Survey


State Statistics Service of Ukraine (ILO, IOM)
(2008 previously) (15-70 year olds)
Section D "Income from abroad and household
welfare“
- Source of support from abroad
- Type of support and amount of cash support
- Frequency and method of receiving financial
support
- Use of financial support and total share of
household income
- Types of goods and their value
Jason Schachter - UNECE Statistical Division
Slide 20
Moldova LFS Labour Force
Migration Module (2012)

Household members, 15-64, currently living
outside country/Recent return migrants (past 2
years)
• What was the average monthly amount of
remittances sent/transferred/brought during
last 2 years (24 months)
• How money was usually sent to beneficiaries
• What money was mainly used for (>1
response possible)
November 6, 2015
Jason Schachter - UNECE Statistical Division
Slide 21
Measurement of Remittances on
Household Surveys

IMF definition:
•
Remittances include all household income
obtained or sent from abroad, regardless of
relationship between sender and receiver
• Monetary or in-kind
• Social benefits

Note: in addition to international migrants,
internal migrants also send remittances
•
(e.g. Armenia ILCS, Tajikistan LSMS)
Jason Schachter - UNECE Statistical Division
Slide 22
Concepts Essential for the
Measurement of Remittances




Population of interest (sending and
receiving countries)
Characteristics of remittance senders and
receivers
Size of remittances (total amount,
frequency, mode, etc.)
Impact of remittances on receivers (and
economic areas)
Jason Schachter - UNECE Statistical Division
Slide 23
Populations of Interest

Origin Countries

Migrants currently living abroad
(e.g. All regional examples)

Return migrants (former remitters)


Destination Countries
•

(e.g. Armenia (2006), Moldova LFS)
Current migrants (who remit)
 (e.g. WB Diaspora survey, Belgium)
More difficult to sample/find rare populations
(migrants, who remit).
•
Targeted sampling approaches
Jason Schachter - UNECE Statistical Division
Slide 24
Characteristics


Who remits?
Characteristics of households receiving
remittances
•
If receive/send remittances (net
remittances)

•
(sent: Armenia (ILCS & 2013), Tajikistan)
Demographic & socioeconomic
characteristics of senders/receivers (age,
sex, education, occupation, etc.)

(available for receivers, but rare for senders in
regional examples)
November 6, 2015
Jason Schachter - UNECE Statistical Division
Slide 25
Characteristics, cont.

Relationship between sender and receiver


If include non-family members (all except Moldova)
If send or receive monetary or in-kind
remittances

All ask about monetary remittances (Armenia, Tajikistan, and
Ukraine ask about goods)


When ask about goods (and food), do not ask
about other types of in-kind remittances (e.g.
payments made on behalf of others).
None specifically ask about social benefits
(e.g. pensions received from abroad).
November 6, 2015
Jason Schachter - UNECE Statistical Division
Slide 26
Size: Total value of remittances sent or
received

Time frame usually 12 months, but sometimes
ask monthly and/or most recent amount




Return migrants often asked average amount
sent per year while living abroad (recall issues)



Moldova average monthly amount (past 24 months)
Tajikistan monthly (past 12 months),
Armenia total amount (past 12 months)
Armenia: not ask for amount
Moldova: average monthly amount (recent returnees)
Do household surveys underreport the actual
amount of remittances sent and received?
Jason Schachter - UNECE Statistical Division
Slide 27
Other Dimensions of “Size”
(characteristics of remittances)

Frequency

How often remittances sent or received (Armenia &
Ukraine)



Armenia ILCS: Regularity (monthly, quarterly, annually)
Armenia (2006): How many times received money past 12
months?
Mode of delivery –id formal/informal channels(all ask, though different response categories)
•
•
•
Moldova (bank account deposit/MTO/courier/personally/friends
or relatives/other(specify))
Tajikistan (foreign bank/tajik bank/brought by self/ sent with
others/hawala system)
Armenia ILCS (bank/post/other); 2006 Survey
(bank/MTO/post/agent/personally/friends or relatives/other)
Jason Schachter - UNECE Statistical Division
Slide 28
Other Dimensions of “Size,” cont.

Details about monetary transactions (cost, how
long it took to receive, trust in banking
institutions, etc.)
•

None
Goods (past 12 months): type, quantity, value,
how sent/received (Armenia 2006)
•
Armenia ILCS & Tajikistan (value of goods only)
• Ukraine: type and value

Other in-kind
•

None
Value of “social benefits,” (none)
•
Ex. “Do you receive a pension for work done while away from
this country? How much do you receive monthly?” ILO
Jason Schachter - UNECE Statistical Division
Slide 29
Measuring the Impact of
Remittances


Subjective Well-Being
• Social protection (increase with need?)
• Poverty reduction (poverty rate with and without)
• Dependency/reliance on remittances
Use of remittances
• Household investment
• Community investment
• Material wealth
• Education
• Health
November 6, 2015
Jason Schachter - UNECE Statistical Division
Slide 30
Impact Questions


Level of income with and without remittances
(most measure on national surveys, e.g. LFS)
What money used for (all ask, “main reason”)
•
Moldova (12 categories, consumption, investment)
• Tajikistan (10 categories, inc. Investment)
• Armenia ILCS (3 categories: daily consumption, real
estate/property)
• Armenia 2006 (17 categories, investment)

Dependency on remittances (none)
•

Ex. “Does this person depend on you financially for more
than 25% of his/her income?” ILO
Often ask for detailed information about
expenditures
Jason Schachter - UNECE Statistical Division
31
Slide 31
Harmonization

Harmonized questions needed to enhance
quality (reliability and validity) of data, as
well as comparability between countries
•


Progress over past 6 years, as regional
examples show
What essential dimensions are needed to
harmonize the measurement of
remittances?
Should a BOP framework be used?
Jason Schachter - UNECE Statistical Division
Slide 32
Recommended Concepts to be Included
on Household Survey Questionnaires






Limited number of questions which can be asked
Depends on what exactly you want to measure
Follow good questionnaire design (e.g. clearly worded,
mutually exclusive and exhaustive response categories)
Use a 12-month time frame for remittances (monthly)
Return migrants relatively recent (if want remittance
details)
Identify sender-receiver relationship and include
remittances from non-family (household) members
Jason Schachter - UNECE Statistical Division
Slide 33
Recommendations, Cont.






Both monetary and in-kind (not just goods),
including social benefits received
Social and demographic characteristics
Income with and without remittances
Use of informal channels (mode of transfer)
Use of remittances (include measure of
reinvestment)
Identify duration of residence abroad
Jason Schachter - UNECE Statistical Division
Slide 34