Impact of internal migration on poverty: Evidence from Bangladesh

Fahira Farjana, Economics Discipline, Khulna University, Bangladesh

MD Shakil Ahmed, BRAC Institute of Governance and Development, BRAC University, Bangladesh

M Daud Ahmed, Manukau Institute of Technology, New Zealand

Abstract: Internal migration has a pivotal contribution to mitigate household income risk, particularly for those in lower socio-economic groups. This research applies the theory of New Economies of Labour Migration to analyse three years of household-level panel data collected by BRAC for evaluating the outcome of internal migration on household welfare. Welfare is analysed using three key outcome variables, namely household income, capability for asset building, and poverty gap. Remittances significantly enhance household-level welfare and vice versa. The study observes that migrant households earn higher, build more assets, and reduce the poverty gap than nonmigrant households.

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