The impact of digitalisation on remittances. Evidence from El Salvador

This paper carries out a microeconomic analysis of the determinants of remittances from a receiving perspective in El Salvador. Specifically, using data from the ‘Encuesta de Hogares de Propósitos Múltiples of 2016’ (2016 Multi-purpose Household Survey -EHPM16), the characteristics of households that affect the reception of remittances in El Salvador in 2016 were analysed, focusing on the level of digitalisation in households. Determinants of remittances are not everlasting and are affected by social and economic changes. In this sense, the effect on remittances caused by an increase in the widespread use of Information and Communication Technologies (ICT) is not an exception. Based on a two steps selection model, the results point out that the household's level of digitalisation significantly increases the probability of receiving remittances, not their amount.     

Migration and food consumption patterns in Ghana

This paper examines the link between migration and food consumption patterns in Ghana, which has a history of widespread migration and high levels of poverty. Data from 4130 households from the nationally representative 2005/2006 Ghana Living Standards Survey are used for the analysis. Since migrants self-select into migration, an instrumental variable approach is taken to analyze the relationship between migration and total food expenditures per capita, food expenditures across a range of food categories and shares of food expenditures across these categories. Overall, the results indicate that migration does not substantially affect total food expenditures per capita, and has minimal noticeable effect on food expenditure patterns. Looking at results in different settings, the analysis indicates that only in high migration regions does migration appear to increase overall food expenditures resulting in a shift towards the consumption of potentially less nutritious categories of food, such as sugar and beverages and eating out of the home. The results raise questions about the value of migration for improving the food consumption of migrant sending households.     

Gendered impacts of the 2007–2008 food price crisis: Evidence using panel data from rural Ethiopia

This paper provides empirical evidence on the gendered impact of the 2007–2008 food price crisis using panel data on 1400 households from rural Ethiopia that were initially surveyed before the onset of the crisis, in 1994–1995, 1997, and 2004, and after food prices spiked, in 2009. It investigates whether female-headed households are more likely to report experiencing a food price shock, and whether female-headed households experiencing a shock are more (or less) likely to adopt certain coping strategies, controlling for individual, household, and community characteristics. Our findings suggest that female-headed households are more vulnerable to food price changes and are more likely to have experienced a food price shock in 2007–2008. Because female-headed households are also resource poor and have a larger food gap compared with male-headed households, they cope by cutting back on the number of meals they provide their households during good months and eating less preferred foods in general. A combination of short-term measures to protect diet diversity and micronutrient consumption of vulnerable groups and longer-term measures to promote investment in sustainable agriculture, such as strengthening women’s property rights, may increase the ability of poor and vulnerable households to cope better with food price increases.     

Reprint of: Crop prices and the individual decision to migrate

This paper investigates the effect of commodity prices, in particular rice and coffee, on the decision of migrating at the individual level. As most coffee production is sold by households for exports, we would expect that coffee price shocks would have a direct effect on the probability to migrate. On the other hand, we would anticipate that fluctuations in rice prices have little or no effect on migration decisions, given that rice is mainly produced for household consumption. We test these hypotheses drawing evidence from migration in Viet Nam. We show that the lower the price of coffee, the higher the likelihood of migrating. This evidence seems to suggest that migration acts as a shock-coping strategy. We find that rice prices have no effect on the probability of migrating. We further explore the extent of migrants’ self-selection and show that lower coffee prices increase the migration probability of individuals with lower education.     

Crop prices and the individual decision to migrate

This paper investigates the effect of commodity prices, in particular rice and coffee, on the decision of migrating at the individual level. As most coffee production is sold by households for exports, we would expect that coffee price shocks would have a direct effect on the probability to migrate. On the other hand, we would anticipate that fluctuations in rice prices have little or no effect on migration decisions, given that rice is mainly produced for household consumption. We test these hypotheses drawing evidence from migration in Viet Nam. We show that the lower the price of coffee, the higher the likelihood of migrating. This evidence seems to suggest that migration acts as a shock-coping strategy. We find that rice prices have no effect on the probability of migrating. We further explore the extent of migrants’ self-selection and show that lower coffee prices increase the migration probability of individuals with lower education.     

The impact of maize price shocks on household food security: Panel evidence from Tanzania

Using three waves (2008/09, 2010/11, 2012/13) of the Tanzanian National Panel Survey, this study investigates the impact of maize price shocks on household food security. Between 2008/09 and 2012/13, calorie intake stagnated for urban households, yet sharply deteriorated for rural households. The latter was driven by a significant decline in the consumption of the major staple maize which showed strongest price hikes among all major food items. Fixed-effects regressions indicate a clear negative relationship between maize prices and average household energy intake. Almost all population groups were found to be negatively affected by maize price shocks, with rural landless households being the most vulnerable group. In particular, a 50 percent rise in maize prices decreases caloric intake for rural (urban) households on average by 4.4 (5.4) percent, and for rural landless households by 12.6 percent. Results further indicate that subsistence agriculture can act as an effective strategy to insure against food price volatility.     

Poverty effects of food price escalation: The importance of substitution effects in Mexican households

Recent food price increases reportedly caused significant numbers of households to fall into poverty, particularly in the developing world. Most research into the welfare effects of these food price changes assumes constant demand or approximates second order substitution effects. Poverty forecasts with these assumptions may overestimate or underestimate the effect of food price increases in a nation where most households consume diverse food baskets. We account for full substitution by calculating a theoretically consistent food demand system, accounting for household responses to food price changes by decreasing some food purchases and increasing other food purchases. We use Mexican data to confirm the mitigation of adverse welfare effects from food price increases after accounting for country-specific dietary preferences in modeling demand. In comparison to previous literature, our welfare measures predict theoretically consistent numbers of Mexican households entering poverty due to recent food price changes.     

What happens to diet and child health when migration splits households? Evidence from a migration lottery program

The impact of migration on food security and child health is likely to differ depending on whether children themselves migrate or whether they remain behind while other household members migrate. However, existing studies have not been able to examine how impacts differ in these two scenarios because parallel data are required for both the sending and receiving country. Moreover, self-selection into migration makes unbiased estimation of either impact difficult. We overcome these problems by using a unique survey of Tongan households that applied to migrate to New Zealand through a migrant quota which selects households through a random ballot. This survey covers both migrant children in New Zealand and non-migrant children in Tonga, with the migration policy rules providing a source of exogenous variation for identifying impacts. Our estimates of short-run impacts show that diets diverge upon migration: children who migrate experience improvements, while diets worsen for children who remain. There is also suggestive evidence of a divergence in health outcomes, with increases in weight-for-age and height-for-age found for migrant children, and decreases found for children who remain behind while other household members migrate.     

Does inflation kill? Exposure to food inflation and child mortality

Unlike extreme malnutrition shocks, such as famine and drought which grab the attention of the media, international aid organizations and policymakers, malnutrition due to food price hikes are often neglected and their impacts on children are not well known. It is well established that malnutrition during the critical periods of early life – between conception and the first 1000 days after birth – has lasting consequences on health and mortality. In this paper, using a uniquely constructed data from Ethiopia that takes advantage of high-frequency local retail food prices, we examine the impact of early life exposure to food price inflation on child mortality. Following survival events since conception, we estimate the causal impact of exposure to inflation during in-utero and infancy. The results show that exposure to a 10 percent inflation in staple food prices during in-utero decreases the survival of children under the age of five by about 5.4 percent. We also find that the impacts are non-linear depending on the specific month of exposure and substantially vary by observable characteristics and the type of staple food.     

Women’s rank modifies the relationship between household and women’s food insecurity in complex households in northern Burkina Faso

This study examined the relationship between food insecurity at household and woman–children sub-unit levels and factors modifying this relationship in complex households in northern Burkina Faso. Data were collected from 126 households and 176 woman–children sub-units every 6 months from July 2001 to July 2003. Household food insecurity varied more between seasons than did woman–children sub-unit food insecurity. Woman–children sub-unit food insecurity increased when household food insecurity increased. Woman–children sub-units in monogamous households were less food insecure – and more at risk of becoming food insecure when the household became food insecure – than sub-units headed by women with first or second rank in polygamous households. Within polygamous households, woman–children sub-units headed by women with rank third or more were more likely to become food insecure when the household became food insecure than those with first or second rank. These results have implications for design, planning, and evaluation of programs and projects aiming to alleviate food insecurity in this and similar settings.     

The effect of household wealth on the adoption of improved maize varieties in Zambia

Production and price risks that could render input use unprofitable sometimes prevent rural households from benefiting from input technological change. The household’s ability to cope with such risks and hence benefit from input technological change is often positively related to its wealth or stock of productive assets. Empirical evidence, however, suggests a non-linear relationship between wealth and adoption of new agricultural technologies so that within a rural community, households on the lower wealth continuum behave differently from those on the higher level. Using farm level data collected from 300 randomly selected households in three districts of Zambia in 2004/2005 crop season, this paper first stratifies households into poorly- and well-endowed households based on their access to productive assets and estimates separate double-hurdle models for the adoption of improved, high yielding maize (IHYM) varieties for each group. The results show that factors influencing the adoption and use intensity of IHYM varieties differ between the two groups. This draws attention to the need for recommending wealth group-specific interventions to increase the adoption and use intensity of such varieties and their subsequent impacts on food security and general livelihoods of the households. The explicit testing for the possibility that differences in household wealth affect the way in which other variables influence adoption decisions is the paper’s unique contribution to the adoption literature.     

Listen to Me,Learn with Me: International Migration and Knowledge Transfer

Existing research on the economic contribution of individual international labour migrants has been couched largely in terms of skills, and has focused on mobility within transnational corporations. This article explores some of the broader links between the literatures on international migration and management, and addresses four main questions: is migrant knowledge selective, is it distinctive, what are the barriers to migrant knowledge transfer and what are the implications for individual migrants and firms. This largely conceptual review is informed by three main premises: the value of adopting a knowledge as opposed to a skills perspective on migration; the importance of examining the cycle of migration rather than static snapshots at particular stages, and the need to consider inter‐firm and extra‐firm migration, as well as intra‐firm mobility.     

Home Ownership,Household Leverage and Hyperbolic Discounting

I examine tenure and mortgage choice in an equilibrium model in which households make decisions as if they discount hyperbolically rather than exponentially. Overall, hyperbolic discounting does not seem to explain the high rates of home ownership or portfolio concentration in housing in the data. I then study the choice between mortgages that require a substantial down payment and mortgages that require no down payment. Allowing households access to no‐down‐payment mortgages exacerbates rather than mitigates the undersaving of hyperbolic discounters. However, even when households discount hyperbolically, welfare is higher when households have access to no‐down‐payment mortgages.     

The rise of supermarkets and changing expenditure patterns of poor rural households case study in the Transkei area,South Africa

Since the late 1990s, the number of supermarkets in South Africa has been steadily growing. Due to a more effective and efficient management and procurement system, the supermarkets can benefit from economics of scale and sell food at a relative low price. In this paper, we present a case study of two villages in the Transkei area of South Africa. In these poor rural communities, the majority of households now buy their main food items from supermarkets rather than from local shops and farmers. While presenting an important step towards livelihood development and food security, these supermarkets form also a strong competitor for local agricultural sales. The supermarkets provide many food items at lower prices. With an increase in income, the households look for variety and exotism in their food products, and will most likely find this in the supermarkets, rather than the local stores. We argue therefore that development programs should focus on the local growers’ access to the supermarket procurement systems.     

The impact of migration on food consumption patterns: The case of Vietnam

This paper explores the relationship between migration and consumption patterns using panel data from the 2004 and 2006 Vietnam Household Living Standards Surveys. Employing an instrumental variable approach to control for the endogeneity of migration, our results indicate that short-term migration has a positive effect on overall per capita food expenditures, per capita calorie consumption and food diversity. Long-term migration also appears to be positively related to consumption, but impacts are often insignificant and of a lesser magnitude than short-term migration. The results provide no evidence of negative effects of migration, and support the view that short-term migration is a mechanism by which households maintain food security. The results suggest that to improve food security the Vietnamese government should enact policies that facilitate short-term migration flows as well as the transferring of remittances.     

An unequal burden: Intra-household dimensions of seasonal health in Tanzania

Seasonal variation in nutritional status is a concern in sub-Saharan Africa. Seasonality in the food consumption of young Tanzanian children has a substantial and negative impact on later life outcomes. Seasonal variation in adult nutritional status has implications for labor productivity and prenatal health. Just as mean poverty status or mean health status varies within households, seasonal patterns in health status are likely to vary within households, as well as the mechanisms underlying seasonal variation. We parameterize and compare seasonality in nutritional status across multiple types of household members in rural, farming households in Tanzania, using a novel anthropometric measure of body mass index z-score that is comparable across adults and children. Young children not yet in school and working adults are most vulnerable to seasonal fluctuations in nutritional status. Children in school and older adults are relatively shielded. Seasonal variation in the nutritional status of working adults can be partly explained by variation in dietary quality and agricultural labor hours. Seasonal variation in the nutritional status of young children is not explained by either factor, nor is it mitigated by market access. Our results suggest we do not understand the data generating process behind seasonality in the nutritional status of young children, despite the critical implications of this seasonality for development and later life productivity.     

The Effect of Consumer Switching Costs on Prices: A Theory and its Application to the Bank Deposit Market

As demonstrated by Klemperer (1987), if households face a cost of switching among brands of a differentiated good, pricing is likely to be more competitive, the greater is the fraction of customers that move into or around the market. I generalize this theory to a world with arbitrary market structure and test it empirically using panel data on bank retail deposit interest rates. I find that the amount of household migration in a market has a significant competitive influence on price markups, that is, a positive effect on the level of deposit interest rates. Consistent with the model, the magnitude of this effect depends in some cases upon the degree of market concentration.     

Examining the link between food prices and food insecurity: A multi-level analysis of maize price and birthweight in Kenya

In developing countries where many poor people rely on rainfed, locally produced food for the majority of their caloric intake, shifts in climate and weather patterns can dramatically reduce agricultural productivity. The reduction in agricultural productivity reduces overall food availability and ultimately impacts food accessibility, putting millions of people at risk for malnutrition. In this project we focus on Kenya where roughly a third of households are food insecure. We examine the relationship of the price of maize and low birth weight to help quantify the impact of local food prices on one outcome of household food insecurity. Using spatially referenced data from recent Kenyan Demographic and Health Survey datasets, price data, livelihood information, and a remotely sensed-based measure of local growing season productivity, we develop a dataset linking pregnancies occurring from 2001 to 2008 to the spatially and temporally relevant maize price data. We construct several regression models to examine the impact of local maize prices and remotely sensed based estimates of crop production on infant birth weight – specifically low birth weight. The results of the models highlight the importance of including community crop production to evaluate maize price impacts on low birth weight outcomes. Also, because of the positive correlation between pre-pregnancy maize prices and birth weight, the results suggest that some households may benefit from high prices or that high prices may impact the number of conceptions. More generally, our work demonstrates that multilevel models that account for community-level variation are important for disentangling these complex relationships and can contribute to the discussion of how to design more effective food policies.     

Does food retail access moderate the impact of fruit and vegetable incentives for SNAP participants? Evidence from western Massachusetts

ObjectivesThis study investigates whether the response of Supplemental Nutrition Assistance Program (SNAP) participants to a 30% incentive on fruit and vegetable spending varies with their access to food retailers.MethodsThe analysis exploits the random assignment of SNAP households in Hampden County, MA, to an intervention group that earned the incentive. Regression models for the impact of the incentive are augmented with measures of food retail access and interactions of random assignment status with food retail access. The main outcome—use of the SNAP benefit—is based on Electronic Benefit Transfer (EBT) card transaction records.ResultsAlthough households that lived within a mile of a participating supermarket spent approximately $2.13 or 19% more per month on targeted fruits and vegetables at participating supermarkets than households that did not live within a mile of a participating supermarket, we found no evidence that the impact of the incentive on SNAP fruit and vegetable spending varies with distance to retailers.ConclusionsThese findings imply that incentives to purchase fruits and vegetables were equally efficacious for SNAP households with high and low access to food retailers.