Remittances and Well-Being among Rural-to-Urban Migrants in China

Abstract

The main objective of this paper is to propose a systematic approach to empirically analyse the relationship between sending remittances and the utility of migrants, as proxied by their subjective well-being (SWB). Using data from a new survey on China, we estimate models in which a SWB measure is regressed on the level of remittances, finding a sizeable positive correlation. The estimates vary with the socio-economic characteristics of migrants, migration experience and the diversity of family arrangements. As a complementary objective, we use SWB measures to elicit the motivations behind remittances, finding evidence that both altruistic and contractual motivations are at work among rural-to-urban migrants in China.