ABSTRACT
The question around migration is whether remittances effectively elevate the economic status of households in migrant-sending regions or are a means of subsistence only. The present study adopts an individual life-cycle approach to understand the contribution of remittances to the household economy by comparing individuals living in households with and without migrants. It uses data from the IIPS migration survey conducted in eastern Uttar Pradesh and Bihar in 2018 and 2019. The findings suggest that remittances lead to noteworthy income surges, though the pattern differs remarkably in the two regions and by type of migration. Despite receiving remittances, individuals from households with international migrants in eastern UP struggle to meet monthly consumption needs until age 30–34 and in Bihar until age 55–59. Remittances received are enough to meet the food consumption expenditure, and non-food expenses on medical are mostly met by borrowing. The study suggests a commercial breakthrough is essential in the region to generate local employment and skill development of migrant workers to increase their earning capacity.
