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Time to remit: the effect of remittances on household consumption and dietary diversity in India Cover

Time to remit: the effect of remittances on household consumption and dietary diversity in India

Open Access
|Dec 2023

Figures & Tables

First stage regression of IV model

(1)(2)
VariablesLog of IncomeLog of Remittance
Parental Education0.01*** (0.00)
Conflict amongst castes 0.12*** (0.03)
Highest education male0.05*** (0.00)−0.12*** (0.01)
Highest education female0.03*** (0.00)0.10*** (0.02)
Land ownership0.03 (0.02)0.04 (0.06)
Urban/rural0.67*** (0.05)1.03*** (0.21)
No of household members aged 0–140.06*** (0.01)−0.60*** (0.09)
No of household members aged 15–19−0.09*** (0.01)−0.38*** (0.05)
No of household members aged more than 190.30*** (0.01)−0.23*** (0.04)
Caste
Brahmin−0.05 (0.05)−0.42** (0.17)
Upper Caste−0.01 (0.03)−0.22** (0.11)
Other backward classes−0.03 (0.03)−0.15 (0.10)
Scheduled tribe0.05 (0.05)−0.16 (0.15)
Dalits--
mills-0.10 (0.15)
Constant9.19*** (0.04)2.36*** (0.14)
Number of observations71,77773,968
R-squared0.180.05
F-test549.05123.29

IV estimate of the impact of remittances on expenditure on food_

Variables(1)(2)(4)(5)(6)(7)(8)

Food expenditureCerealNon-cerealPulsesMeat and eggsVegetable and fruitsNon-cereal to cereal
Log of remittance0.67*** (0.05)−0.26*** (0.06)0.95*** (0.06)1.02*** (0.11)2.03*** (0.20)1.05*** (0.13)5.88*** (0.48)
Log of Income0.42*** (0.09)0.19 (0.13)0.47*** (0.12)−0.57*** (0.21)−0.34 (0.37)−0.29 (0.24)1.19 (1.01)
Highest education male0.07*** (0.01)−0.03*** (0.01)0.10*** (0.01)0.16*** (0.02)0.26*** (0.03)0.15*** (0.02)0.62*** (0.07)
Highest education female−0.06*** (0.01)0.02*** (0.01)−0.08*** (0.01)−0.05*** (0.01)−0.16*** (0.02)−0.05*** (0.01)−0.51*** (0.06)
Land ownership0.03*** (0.01)0.09*** (0.01)0.02** (0.01)0.02 (0.03)−0.05 (0.04)0.12*** (0.03)−0.41*** (0.12)
Urban/rural−0.68*** (0.08)−0.03 (0.11)−0.87*** (0.10)0.04 (0.19)−1.24*** (0.32)0.04 (0.21)−3.73*** (0.87)
HH members aged 0–140.31*** (0.02)0.05* (0.03)0.38*** (0.02)0.29*** (0.04)0.65*** (0.08)0.27*** (0.05)1.67*** (0.19)
HH members aged 15–190.44*** (0.03)0.02 (0.04)0.56*** (0.03)0.66*** (0.06)1.20*** (0.11)0.65*** (0.07)2.68*** (0.27)
HH members aged>190.16*** (0.03)0.03 (0.04)0.21*** (0.04)0.56*** (0.07)0.72*** (0.12)0.54*** (0.08)0.89*** (0.32)
Caste
Brahmin0.18*** (0.03)−0.09** (0.04)0.26*** (0.04)0.24*** (0.07)−0.49*** (0.14)0.27*** (0.08)2.11*** (0.35)
Forward Caste0.12*** (0.02)0.00 (0.02)0.15*** (0.02)0.18*** (0.04)−0.09 (0.08)0.17*** (0.05)0.84*** (0.26)
Other backward classes0.07*** (0.02)−0.04** (0.02)0.10*** (0.02)0.04 (0.04)−0.10 (0.07)0.06 (0.05)0.77*** (0.25)
Scheduled tribe0.09*** (0.03)−0.05 (0.03)0.13*** (0.03)0.13* (0.07)0.33*** (0.11)0.13* (0.08)0.62 (0.69)
Dalits (reference group)-------
Constant1.69* (0.87)4.77*** (1.20)0.12 (1.08)6.53*** (1.99)1.10 (3.47)4.58** (2.20)−21.93** (9.41)
R-squared0.150.090.130.050.030.070.02
Number of observations73,55473,55473,55473,55473,55473,43273,271

IV estimate of the impact of remittances on food diversity

VariablesHDDS (1)Simpson Index (2)Shannon Index (3)
Log of remittance0.473** (0.02)0.045*** (0.006)0.312*** (0.026)
Log of Income0.063 (0.04)0.017* (0.010)0.084* (0.046)
Highest education male0.00 (0.00)0.005*** (0.001)0.035*** (0.004)
Highest education female−0.01** (0.00)−0.004*** (0.001)−0.027*** (0.003)
Land ownership0.02*** (0.00)−0.002* (0.001)−0.012** (0.006)
Urban/rural−0.09*** (0.04)−0.047*** (0.009)−0.288*** (0.040)
Household members aged 0–140.03*** (0.01)0.013*** (0.002)0.102*** (0.010)
Household members aged 15–190.03** (0.01)0.023*** (0.004)0.166*** (0.015)
Household members aged more than 19−0.00 (0.01)0.007** (0.003)0.059*** (0.015)
Caste
Brahmin−0.02* (0.01)0.013*** (0.003)0.071*** (0.015)
Forward Caste−0.01 (0.01)0.006*** (0.002)0.038*** (0.010)
Other backward classes−0.02*** (0.01)0.003 (0.002)0.013 (0.009)
Scheduled tribe0.01 (0.01)0.003 (0.004)0.021 (0.015)
Dalits (reference group)---
0.568*** (0.095)0.559 (0.423)
R-Squared 0.0150.034
Number of observations61,97673,55473,554

The impact of receiving remittances on food consumption and diversity using propensity score matching (average treatment effect on the treated estimator)_

20122005


VariableFood expHDDSShannonSimpsonFood expHDDSShannonSimpson
Remittances (1 vs 0)0.084*** (0.15)0.193*** (0.036)0.010 (0.006)−0.001 (0.001)0.068*** (0.019)0.234*** (0.054)0.001 (0.010)0.001 (0.02)
Observations31,671 40,499

Fixed effect logit model

(1)
VariablesRemit (1/0)
Dependency ratio−0.21*** (0.08)
Highest education male−0.11*** (0.01)
Highest education female0.13*** (0.01)
Land ownership0.03 (0.08)
Urban/rural1.26*** (0.24)
No. of household members aged 0–14−0.71*** (0.03)
No. of household members aged 15–19−0.34*** (0.04)
No. of household members aged more than 19−0.30*** (0.04)
Conflict among castes0.11** (0.05)
Brahmin−0.87*** (0.25)
Upper Caste−0.46*** (0.17)
Other backward classes−0.34** (0.16)
Scheduled tribe−0.31 (0.24)
Dalits-
Number of observations9330

Fixed effect model without IV

(1)(2)(3)(4)
VariablesLog of food expenditureHDDSSimpson IndexShannon Index
Log of remittance0.01*** (0.00)−0.002** (0.001)0.00*** (0.00)0.01*** (0.00)
Log of income0.15*** (0.00)0.004* (0.002)0.01*** (0.00)0.05*** (0.00)
Highest education male0.01*** (0.00)0.002*** (0.001)0.00*** (0.00)0.00*** (0.00)
Highest education female0.01*** (0.00)0.001 (0.001)0.00*** (0.00)0.00*** (0.00)
Land ownership0.06*** (0.01)0.019** (0.008)0.00 (0.00)0.00 (0.01)
Urban/rural0.10*** (0.02)−0.004 (0.021)−0.00 (0.00)0.02 (0.01)
No. of household members aged 0–140.06*** (0.00)0.007*** (0.002)−0.00*** (0.00)−0.01*** (0.00)
No. of household members aged 15–190.09*** (0.00)0.008*** (0.003)−0.00 (0.00)0.00 (0.00)
No. of household members aged more than 190.10*** (0.00)0.005* (0.003)0.00* (0.00)0.01*** (0.00)
Caste
Brahmin−0.06** (0.02)−0.041** (0.020)−0.00 (0.00)−0.04*** (0.01)
Upper Caste−0.00 (0.02)−0.016 (0.013)−0.00 (0.00)−0.02** (0.01)
Other backward classes−0.02 (0.01)−0.031** (0.012)−0.00* (0.00)−0.03*** (0.01)
Scheduled tribe0.01 (0.02)0.004 (0.020)−0.00 (0.00)−0.02 (0.01)
Dalits- --
Constant5.76*** (0.03) 0.77*** (0.00)1.66*** (0.02)
Number of observations72,17059,58472,17072,170
R-squared0.22 0.030.06

Summary statistics

20052011–12

Without remittanceWith remittancesWithout remittanceWith remittances
Household monthly food expenditure (in Rs)3,296.266 (2,087.07)3,212.52 (2,037.30)4,179.17 (2,455.38)3,816.94 (2,430.49)
HDDS7.25 (1.67)7.45 (1.68)7.25 (1.66)7.24 (1.56)
Simpson Index0.84 (0.07)0.84 (0.07)0.85 (0.05)0.85 (0.05)
Shannon Index2.15 (0.31)2.15 (0.30)2.26 (0.25)2.24 (0.24)
Household total yearly income (in Rs)88,073.55 (137,881.26)59065.04 (121,007.67)139,220.79 (231,057.50)93116.06 (234,939.80)
Household total yearly consumption (in Rs)94,157.97 (178380)109,348.62 (233,595.6)127,006.89 (127,645.98)119,839.74 (133,926.63)
Amount of remittances (in Rs)0.00 (0.00)33,561.81 (29,429.99)0.00 (0.00)48,323.84 (70,908.84)
Meat and eggs expenditure232.632 (377.197)218.124 (306.859)376.186 (504.388)310.572 (464.956)
Vegetables and fruits expenditure417.841 (409.864)395.517 (376.679)684.783 (542.362)610.678 (499.544)
Pulses expenditure164.777 (172.757)169.184 (184.273)226.766 (186.105)211.504 (168.845)
Cereal and cereal products915.572 (577.961)914.537 (614.485)872.316 (554.982)812.736 (586.939)
Non-cereal total expenditure2380.694 (1769.853)2298.089 (1700.029)3306.857 (2167.823)3004.212 (2097.036)
Households living in villages experiencing conflict amongst caste

Conflict amongst caste is a dummy variable where 0 means various castes get along well and 1 means there is somewhat or a lot of conflict among castes.

(in %)
28 (45)30 (45)40 (49)40 (49)
Household size5.21 (2.47)4.72 (2.67)5.07 (2.33)4.58 (2.75)
No of household members aged 0–141.65 (1.56)1.51 (1.68)1.32 (1.41)1.28 (1.60)
No of household members aged 15–190.74 (0.97)0.67 (0.89)0.63 (0.86)0.55 (0.81)
No of household members aged more than 192.80 (1.37)2.53 (1.42)3.11 (1.44)2.74 (1.48)
Dependency ratio (in %)55 (59)59 (84)41 (50)43 (65)
Highest male education (in years)6.93 (5.14)5.41 (5.49)7.89 (5.19)5.67 (5.58)
Highest female education (in years)4.61 (5.04)4.89 (5.17)5.93 (5.36)5.29 (5.39)
Household owning land (in %)41 (49)53 (49)40 (49)55 (49)
Household residing in urban area (in %)36 (48)25 (43)39 (49)25 (43)
Number of rooms in the dwelling2.51 (1.61)3.06 (1.98)2.83 (1.69)3.21 (1.92)
Caste
Brahmin (in %)0.05 (0.23)0.07 (0.25)0.05 (0.22)0.07 (0.25)
Forward castes (in %)0.26 (0.44)0.28 (0.45)0.26 (0.43)0.25 (0.43)
Other backward classes (in %)0.38 (0.48)0.42 (0.49)0.38 (0.48)0.43 (0.49)
Dalit (in %)0.20 (0.40)0.17 (0.38)0.20 (0.40)0.18 (0.38)
Scheduled tribes (in %)0.08 (0.27)0.04 (0.20)0.09 (0.28)0.06 (24)
Number of observations39,4742,05627,9904,531
Language: English
Accepted on: Feb 21, 2023
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Published on: Dec 8, 2023
Published by: Sciendo
In partnership with: Paradigm Publishing Services
Publication frequency: 1 issue per year

© 2023 Navjot Sangwan, Luca Tasciotti, published by Sciendo
This work is licensed under the Creative Commons Attribution 4.0 License.