Bộ GIÁO DỤC VÀ ĐÀO TẠO TRUÔNG ĐẠI HỌC KINH TÉ TP.HCM BẢO CẢO TỎNG KẺT ĐẺ TÀI NGHIÊN CỨU KHOA HỌC THAM GIA XÉT GIẢI THƯỞNG “NHÀ NGHIÊN cú ủ TRẺ UEH” NĂM 2024 MIGRATION AND ITS IMPACT ON THE LIVING STANDARDS OF RURAL HOUSEHOLDS IN VIETNAM. Thuộc nhóm chuyên ngành: Kinh tế phát triền TP. Hồ Chí Minh - 02/2024 1 ABSTRACT Although migration is frequently used to enhance people's lives, it also has the unintended consequence of creating an imbalance in the labor force and socioeconomic development between the migration source and destination. This paper attempts to investigate the impact of migration on the living standards of rural households in Vietnam.
For research purposes, the author uses data from the 2018 Vietnam Household Living Standards Survey combined with three data processing methods. First, the author uses the probit model combined with marginal effects to show the impact of factors on the probability of migration. Second, using the propensity score matching method (PSM) to examine the differences in characteristics between two groups of households with migrants and non-migrants. Finally, the least squares (OLS) regression technique is used to determine the impact of migration, remittances from migration, and other factors on measures of household living standards.
The living standard of rural households is measured by four indicators: average expenditure per capita per month, average income per capita/month, average health expenditure per month, and average education expenditure per month. These indicators were selected by the author to reflect the living standard of the household because they clearly show the economic and financial status of the household through sources of income and essential expenses. Some important results have found that migrant workers have a positive impact on rural household living standards. At the same time, remittances from migration also have a similar impact and are specifically shown through average income per capita/month and average health spending/month.
Keywords: Migration, rural migrant workers, rural household living standards, remittances from migration, PSM. 2 TABLE OF CONTENT ABSTRACT.1 TABLE OF CONTENT.2 LIST OF FIGURES AND TABLES. 4 LIST OF ABBREVIATIONS.1 Necessity of the research.2 Reason to choose topic.4 Scope of the research. 10 CHAPTER 2: LITERATURE REVIEW.1 The basic concepts.1 Concepts related to migration.2 Rural migrant workers.2 Factors affect household migration.3 Household living standards.4 Theories related to migration.2 Conclusion of previous studies.
32 CHAPTER 4: RESEARCH RESULTS.1 Statistical result from VHLSS data.2 Factors affecting rural migrant workers.3 Comparing characteristics between rural migrant and non-migrant households using the PSM method.4 Impacts of migration, remittances and other characteristics on the living standards of rural households. 42 CHAPTER 5: CONCLUSION AND POLICY RECOMMENDATION. 55 4 LIST OF FIGURES AND TABLES Figure 1: Migration model of Everett S.Lee 1966 15 Table 1: Summary of variables in Probit model. 24 Table 2: Summary of variables in the OLS regression model 26 Table 3: Descriptive statistics 1 29 Table 4: Descriptive statistics 2 30 Table 5: Results of the Probit model and marginal effects 31 Table 6: PSM results comparing characteristics between households with migrants and non-migrants 35 Table 7: OLS results of the impact of migration, remittances and other characteristics on living standards of rural households 36 5 LIST OF ABBREVIATIONS Abbreviations Definition IOM International Organization for Migration OLS Ordinary Least Square PSM Propensity Score Matching VHLSS Vietnam Household Living Standard 6 CHAPTER 1: OVERVIEW 1.1 Necessity of the research For an extended period, migrant labor has been seen as a crucial component of the nation's economic growth generally and international integration specifically (De Haan, 1999).
Migration plays an extremely essential role in population redistribution as well as labor economic restructuring, handling employment-related issues, overcoming poverty and being an important part of the economic development plan - a sustainable society of the government. In addition, migrant labor is also one of the key factors in reshaping the social position of migrant households (De Haan, 1999). The International Organization for Migration Report projects that by 2020, there will be 281 million migrant workers worldwide, or 3.6% of the world's population. The number of people migrating for work has increased steadily during the previous 50 years.
Furthermore, projections indicate that by 2030, the number of migrants is likely to exceed 350 million, with remittances amounting to 5.4 trillion US dollars - twice the GDP of Africa in 2022 (IOM, 2020). Over 6% of the population in Asia migrates within areas, and this percentage would rise if short-term and short-distance migration were also taken into consideration (Bell and Charles Edwards, 2013). In Vietnam, according to the report of the General Statistics Office (2020), domestic migrant workers aged 15 years and older are 877.8 thousand people and occupy 8.4% of the total workforce in the country, of which 55% are women and the majority move to urban areas (69%). However, the ratio of migrants to the total population aged 15 and over is still quite low (1.2%), in urban areas it is higher than 3.6 times higher than in rural areas (2.2 Reason to choose topic The relationship between migration and the living standard of households in rural areas is extremely important because it creates two advantages.
First of all, both immigrants and the new locations they settle in benefit from this tendency. Second, migration 7 contributes to the expansion of the socioeconomic divide between rural and urban regions, as well as between points of departure and arrival. According to Adams and Page (2003), international migration and remittances from migration have a positive impact on household living standards in developing countries. Migration from poor and developing countries to rich and developed economies increases the income of the poor and plays a role in poverty reduction.
Stahl (1982) has shown that migration, especially international migration, can be costly, implying that wealthier households are more likely to engage in migration activities. As for internal migration, a study in India examined and found that migration exacerbates inequality in rural areas. This is because wealthy migrants are more likely to be attracted by promising opportunities in big cities or abroad, while impoverished people are forced to migrate due to poverty in the countryside (Lipton, 1980). In addition, the relationship between remittances from migration and household living standards as well as poverty has also been verified through some previous studies.
By using the Ghana Living Standards Survey as well as PSM method, Adams Jr and Cuecuecha (2013) showed that remittances play an important role in reducing household poverty. In Latin America and the Caribbean, Acosta Ct al.(2008) used a large cross-country panel data set to investigate the relationship between remittances from migration, economic growth and poverty reduction. The authors concluded that remittances have both positive effects in promoting economic growth and negative effects in contributing to poverty reduction (Acosta et al. Adams Jr and Cuecuecha (2010) used information collected from the 2000 Guatemala ENCOVI Survey and similarly found that remittances from migration have a positive impact on health care and education spending in Gatcmala.
At the same time, Ziescmer (2012) also commented that remittances not only have a direct positive impact on the growth rate of GDP per capita but also on the rate of educational spending - one of the important expenditures to show the living standard of the household. In Vietnam, Nguyen Duc Thanh and Hoang Thi Chinh Thon (2012) argued that remittances from 8 migration have helped to increase the number of households escaping poverty and promoted economic development. Therefore, this showed that the issue of migration or remittances affecting the living standards of rural households is extremely important and necessary for the government and policymakers to consider when establishing recommendations and policies for people at the origin of migration. Previous studies can not avoid some limitations.
Firstly, previous research have mostly used the remittance variable to represent the migration variable in order to examine how it affects living standards within households. However, that way of choosing variable will not be satisfactory in some cases such as households relocate but do not get remittances, this variable selection will not be enough. In order to reduce inaccuracies, the author of this study will concurrently assess the influence on household living standards using both migration and remittance factors. Simultaneously, this will provide readers with a broader understanding of their direct correlation with rural household living conditions.
Secondly, most of the previous studies using the PSM method to investigate the impact of remittances or migration variables on household living standards used the Stata tool, more specifically the psmatch2 command. However, that analysis technique only stops at showing the difference between living standards between households with migrants and non-migrants. This does not demonstrate how migration and remittances directly affect on household living standards in rural areas. Therefore, in this study, the author will immediately combine it with the OLS regression method to show more specifically the influence of migration and remittances from migrants on household living standards in rural areas.
Furthermore, R-Studio, a data processing program, will be utilized in this study. It is highly unusual to find research using other tools because earlier writers, with comparable themes, mostly applied the psmatch2 approach through analysis using Stata. Therefore, this paper will partly contribute to the richness of research by applying other tools in general and R-Studio in particular to bring readers the results shown, through more aspects thanks to the flexible application of a variety of analysis 9 toolsThirdly, the writers have examined a wide range of elements related to migration, including what influences a person's desire to move, how migration impacts a person's new place of residence, and how migration promotes economic growth and productivity, among many other viewpoints. However, most previous studies have focused on the destinations of migrants as large cities such as Ho Chi Minh City and Hanoi - which are the regions that would primarily be the first option for the migration decision.
For this reason, this research will be beneficial in evaluating how rural migrant workers affect their hometowns, particularly in terms of the quality of life for households in rural Vietnam. In order to create a legal balance between the migrant workers' place of residence and their destination, this paper will assist managers and policymakers in having a more comprehensive and clear understanding of the process of establishing rules, regulations, and content on the problem of agricultural migrant workers. The main objective of the article is to investigate how the living conditions of Vietnamese rural households are affected by migrant labor. Vietnam was selected as the research region for two reasons.
Firstly, the number of research articles examining this issue in Vietnam is still very limited because most studies only focus on looking at how destination changes are affected by labor migration and how they impact production and economic growth. Secondly, Vietnam is a place with a very high rale of migration from rural areas to other places. Perhaps for that reason, migration causes a clear population imbalance between places and we have found the results of how migration affects places which they moved to previous research articles. As a result, the goal of this study is to focus on investigating where they decide to leave and how the living standards of households in that place are affected by the pressure of rural migrant workers.3 Research objectives 10 The objective of the study is to look at the recent situation of rural job migration in Vietnam.
Assessing the impact of migration on the living standards of rural households in Vietnam. Proposing and planning appropriate policies for the current situation of migrant workers in socio-economic development. The research investigates the impact of migrant labor on rural household living standards to focus on answering a number of main research questions including: - What factors affect rural job migration? - How does rural migrant labor affect household income and expenditure? - How does rural migration impact household health and education spending? - Can remittances from migrants help improve household living standards? 1.