Impact of Remittances on Spending Behavior and Work Choices in Thai Households: A Quasi-Experimental Study

Remittances from migrants are essential for left-behind families in impoverished areas of developing countries. This paper uses data from the Thailand Household Socio-Economic Survey 2019 (HSES 2019) to quantitatively assess the impact of remittances on household spending behavior and their choice of labor force participation via a propensity score matching technique. An attempt is made to examine whether the outcome varies with the household head’s gender. It is estimated that 2.1 million households, 10% of Thai households, have received remittances from migrants in 2019. Remittance-receiving households reduce spending share on food and allocate the funds toward spending related to durable goods, healthcare, and education. The impact of remittances on productive consumption is more pronounced among female-headed households than male-headed households. Moreover, remittances slightly reduce the labor force participation of female household heads but have no impact on the labor force participation of male household heads. Fiscal policy that encourages sending remittances to families left behind should be established, along with measures that promote international migration through formal channels.