Heterogeneous Effects of International Migration and Remittances on Crop Income: Evidence from the Kyrgyz Republic

SummaryThis paper uses a unique representative household budget survey from the Asian Development Bank to analyze the impact of international migration and remittances on crop income of rural farmers in the Kyrgyz Republic. Unlike other studies we allow the impact of remittances to be different for farmers with different land size and test whether reduced labor availability is more relevant for permanent than for seasonal migrants. We find that losing family members has a significant negative effect on crop income, but only for permanent migrants. Remittances partially compensate for this, but their positive impact decreases with farm size.