Gender plays a role in remittance use and sending

Although migration and remittances are closely linked, one does not necessarily imply the other. Seventy-one percent of households with an emigrant received remittances, compared to 2% of households without an emigrant. Overall, about one in four households had received international remittances in the year prior to the survey. Of these, most (79%) - but not all - received remittances from an emigrant member; 95 (21% of remittance-receiving households) received them from another source (Figure 3.6).

Figure 3.6. About one in four households in the sample received remittances

Share of households receiving remittances (%)

Note: The category “households receiving remittances from former member” does not imply that they solely receive remittances from a former member. It includes households that receive remittances also from other emigrants.

Source: Authors’ own work based on IPPMD data.

What financial decisions are made by households receiving remittances from a former household member? The most common activity was to repay a loan (Figure 3.7). Households in rural areas were particularly likely to do so, with 28% of them repaying loans, compared to 22% of households in urban areas. Households undertook similar activities regardless of whether they were headed by men and women (not shown), except that households headed by a woman are more likely to invest in schooling than those headed by men (14% versus 8%).

Figure 3.7. Repaying debt was the most common activity for remittance receiving


Activities taken by households receiving remittances from a former member

Note: The sample only includes households that receive remittances from a former household member. The figure displays the top seven most common activities reported by households. Households could specify whether they had undertaken each activity from the following list: taking a loan from a bank, paying for health treatment or schooling of a household member, accumulating savings, repaying a debt/loan, building or buying a home, investing in agricultural activities, taking out a loan from informal sources, accumulating debt, setting up a business, building a dwelling to sell to others, buying land, and restoring or improving housing.

Source: Authors’ own work based on IPPMD data.

The survey also collected detailed information on the amount of remittances received from former members, the frequency of sending, and the channels used. The average amount sent home by emigrants in the 12 months leading up to the survey was AMD 756 120 (Armenian Dram), equivalent to USD 1 854. This includes both monetary remittances and the cash equivalent value of in-kind remittances. Only about 3% of emigrants had sent in-kind remittances over the year leading up to the survey, with an average estimated value of AMD 214 000 (USD 525). About 39% of remitting emigrants sent remittances at least once a month, another 42% did so on a quarterly or yearly basis, while the rest did not send funds regularly. More than 90% of monetary remittances were sent using the formal bank system.

Women were less likely to send remittances than men, as only 20% of emigrated women sent remittances compared to 66% of men. This difference holds across different destination countries and levels of education. However, the average amount sent by women was higher, as women remitted AMD 837 607 (USD 2 053) on average, while men remitted AMD 729 160 (USD 1 788).

< Prev   CONTENTS   Source   Next >