The Potential of Using Household The Potential of Using Household Surveys to Improve the Surveys to Improve the

Measurement of International Measurement of International Migrant Remittance DataMigrant Remittance Data

Jason P. SchachterJason P. SchachterSenior Statistician, Senior Statistician,

Bureau of Statistics, ILO GenevaBureau of Statistics, ILO Geneva

Joint UNECE/Eurostat Work Session on Migration Statistics

Edinburgh, Scotland, November 20-22, 2006

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IntroductionIntroduction

As international migration continues to As international migration continues to grow, so will migrant worker grow, so will migrant worker remittances remittances

Current remittance data is lackingCurrent remittance data is lacking ILO is involved in a project to improve ILO is involved in a project to improve

the measurement of international the measurement of international labour migration data, including labour migration data, including migrant remittances, through the use migrant remittances, through the use of household surveysof household surveys

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Current state of remittance dataCurrent state of remittance data

World Bank’s estimate of global World Bank’s estimate of global remittances was 167 billion dollars remittances was 167 billion dollars for 2005for 2005

Official estimates of remittances Official estimates of remittances come from “Balance of Payments” come from “Balance of Payments” (BOP) records reported to IMF by (BOP) records reported to IMF by Central BanksCentral Banks

Actual amount likely to be much Actual amount likely to be much largerlarger

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What should be counted as What should be counted as remittances?remittances?

Currently no universal agreement on how to Currently no universal agreement on how to measure international migrant remittances measure international migrant remittances (IMF (IMF defines as money sent by workers living abroad defines as money sent by workers living abroad for more than one year)for more than one year)

Remittances can be:Remittances can be:MonetaryMonetary: Cash, Money transfers, Cheques, etc.: Cash, Money transfers, Cheques, etc.In-KindIn-Kind: Goods, Donations, Payments on behalf : Goods, Donations, Payments on behalf of others, etc.of others, etc.

Should remittances to non-family members be Should remittances to non-family members be included?included?

In addition to international migrants, internal In addition to international migrants, internal migrants also send remittances.migrants also send remittances.

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What BOP components are usually What BOP components are usually counted as international migrant counted as international migrant

remittances?remittances? Worker remittancesWorker remittances

Private transfers between Private transfers between residentresident and and non-residentnon-resident households in other countries households in other countries

Compensation of employeesCompensation of employeesIncome received by non-resident migrants Income received by non-resident migrants

(first year)(first year) Migrant transfersMigrant transfers

Net worth of migrants transferred at initial Net worth of migrants transferred at initial time of migration (first year)time of migration (first year)

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Some limitations of “Balance of Some limitations of “Balance of Payment" remittance dataPayment" remittance data

Inability of banks to distinguish between short-Inability of banks to distinguish between short-and long-term migrants (one-year residency)and long-term migrants (one-year residency)

Misses transactions made at non-bank Misses transactions made at non-bank locations (e.g. money transfer centres)locations (e.g. money transfer centres)

Lack of information about "informal" (e.g. Lack of information about "informal" (e.g. hand-carried) or “in-kind” (e.g. goods) hand-carried) or “in-kind” (e.g. goods) remittancesremittances

Inconsistent recording and reporting practices Inconsistent recording and reporting practices of BOP between, and even within, countries of BOP between, and even within, countries over timeover time

Inability to identify flows (where remittances Inability to identify flows (where remittances go)go)

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How can household surveys help How can household surveys help measure remittances? measure remittances?

Improved measurement of the true Improved measurement of the true “size”“size” of remittances by collecting information of remittances by collecting information missing from current methods (i.e. non-bank missing from current methods (i.e. non-bank transactions, informal and “in-kind” transactions, informal and “in-kind” remittances, etc.), and adjusting BOP totals remittances, etc.), and adjusting BOP totals accordingly accordingly

Measurement of the Measurement of the characteristicscharacteristics of of migrants (remittance senders and receivers)migrants (remittance senders and receivers)

Measurement of the iMeasurement of the impact mpact of remittancesof remittances

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Advantages of using Labour Force Advantages of using Labour Force SurveysSurveys

Large and nationally representative Large and nationally representative sample size sample size

Conducted regularlyConducted regularly Labour force (and other) characteristics Labour force (and other) characteristics

already included on surveyalready included on survey Using a pre-existing survey Using a pre-existing survey

infrastructure is less costly than using a infrastructure is less costly than using a specialized survey to collect the same specialized survey to collect the same informationinformation

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Possible disadvantages to using Labour Possible disadvantages to using Labour Force (and household) SurveysForce (and household) Surveys

Some LFS exclude foreigners and/or GQ populations Some LFS exclude foreigners and/or GQ populations (which often house temporary migrants) (which often house temporary migrants)

Non-response, particularly for “illegal” migrants (hard-Non-response, particularly for “illegal” migrants (hard-to-find population)to-find population)

Insufficient number of cases, particularly in countries Insufficient number of cases, particularly in countries with few migrants, since using a sample of the with few migrants, since using a sample of the population to measure a relatively rare event population to measure a relatively rare event (migration)(migration)

Data recall and accuracy, especially for money-related Data recall and accuracy, especially for money-related information information

Additional questions could increase respondent burdenAdditional questions could increase respondent burden Cost of adding (and sustaining) additional questionsCost of adding (and sustaining) additional questions The LFS is an inappropriate vehicle to ask migration The LFS is an inappropriate vehicle to ask migration

questions (better to use a specialized survey)?questions (better to use a specialized survey)?

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ILO’s Migration Module ProjectILO’s Migration Module Project

ILO has developed a “large” migration ILO has developed a “large” migration module for attachment to household module for attachment to household surveys (with over 200 questions)surveys (with over 200 questions)

Currently testing a limited number of Currently testing a limited number of questions in both Armenia and Thailandquestions in both Armenia and Thailand

In addition to remittances, the module In addition to remittances, the module measures other dimensions of migration measures other dimensions of migration like: country of birth/citizenship, migration like: country of birth/citizenship, migration history, reasons for moving, migration history, reasons for moving, migration networks, pre-migration characteristics, networks, pre-migration characteristics, methods of finding employment, and methods of finding employment, and current labour force situationcurrent labour force situation

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Project goalsProject goals

Improve the collection of international labour Improve the collection of international labour migration statistics by:migration statistics by:

1.1. Creating questions which effectively measure Creating questions which effectively measure dimensions of labour migration and can be dimensions of labour migration and can be added to pre-existing or new household surveys added to pre-existing or new household surveys

2.2. Developing questions that can be used by Developing questions that can be used by multiple countriesmultiple countries

3.3. Increasing international dialogue about Increasing international dialogue about migration statisticsmigration statistics

Limitation: does not include internal migrants’ Limitation: does not include internal migrants’ remittancesremittances

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The project in Thailand (short version)The project in Thailand (short version)

Twenty questions added to pre-existing Twenty questions added to pre-existing LFS migration module (started in 2005)LFS migration module (started in 2005)

15,000 households in test sample15,000 households in test sample Examples of questions added: country of Examples of questions added: country of

birth/citizenship, year of first and most birth/citizenship, year of first and most recent entry, methods used to send goods recent entry, methods used to send goods and remittances, and several questions and remittances, and several questions about remittances receivedabout remittances received

Currently in the field (Oct-Dec), with Currently in the field (Oct-Dec), with results expected by early next yearresults expected by early next year

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The project in Armenia (long version)The project in Armenia (long version)

Republic of Armenia’s LFS began in 1996Republic of Armenia’s LFS began in 1996 Armenia’s LFS does not currently include Armenia’s LFS does not currently include

any migration-related questionsany migration-related questions Tested over 40 questions Tested over 40 questions Questions were not included on the Questions were not included on the

regular LFS, but were rather tested as a regular LFS, but were rather tested as a separate survey (to increase efficiency in separate survey (to increase efficiency in fieldwork organization, monitoring, and fieldwork organization, monitoring, and data processing)data processing)

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Data collection/processingData collection/processing

1,985 households sampled (2006 LFS 1,985 households sampled (2006 LFS has 3,000 in sample)has 3,000 in sample)

Used sampling frame from the 2001 Used sampling frame from the 2001 Armenian Census, representative of Armenian Census, representative of Armenia’s 11 Armenia’s 11 marz marz administrative administrative and territorial divisionsand territorial divisions

Data collection and processing Data collection and processing completed, beginning to tabulate completed, beginning to tabulate resultsresults

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ARMENIA MIGRATION SURVEY Q U E S T I O N N A I R E

Confidentiality of the information presented is guaranteed by Law RA On State Statistics.

According to the Law RA On State Statistics, the information obtained during the interview will be published only in the summarized form for analysis of the statistics on population migration.

GENERAL INFORMATION ON HOUSEHOLDPART A.

Household Number

Marz (name)

•Community (name)

•Settlement (Urban-1/ Rural -2)

NATIONAL STATISTICAL SERVICE REPUBLIC OF ARMENIA

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PART D: General Information on PART D: General Information on

HouseholdHousehold Collects information about household Collects information about household

members’:members’: AgeAge SexSex Educational attainmentEducational attainment Marital statusMarital status Country of birth/citizenshipCountry of birth/citizenship If If lived in another country for more than 3 lived in another country for more than 3

months since 1990?months since 1990?

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PART E: PART E: MMigrationigration H Historyistory and and RemittancesRemittances

(return migrants)(return migrants)

LLast country lived in for longer than 3 ast country lived in for longer than 3 months? months?

When first moveWhen first movedd to that country? to that country? WhenWhen most recently cmost recently caame back to live in me back to live in

ArmeniaArmenia?? If eIf ever ver worked worked while living abroadwhile living abroad?? If ever If ever sensentt money or goods back to money or goods back to

friends or relatives in friends or relatives in ArmeniaArmenia? ?

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PART F: Remittances ReceivedPART F: Remittances Received

Do any Do any householdhousehold members who members who previously resided in this previously resided in this householdhousehold currently live abroad?currently live abroad?

In what country does he/she live? In what country does he/she live? When moveWhen movedd to COUNTRY? to COUNTRY? If ever sent money home?If ever sent money home? If currently works?If currently works?

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PART F (cont.)PART F (cont.)

When was money first sent?When was money first sent? When was money last sent?When was money last sent? Over the past 12 months, how many times Over the past 12 months, how many times

have you received money from this have you received money from this person? person?

Over the past 12 months, what is the total Over the past 12 months, what is the total value of money you have received from value of money you have received from this person? this person?

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PART GPART G: Receive: Receivedd Remittances Remittances from from non-H/H Membernon-H/H Member

Relationship to household head Relationship to household head In what country do(es) they (he/she) live? In what country do(es) they (he/she) live? If currently works?If currently works? First and last time received money from First and last time received money from

this person?this person? Over the past 12 months, how many times Over the past 12 months, how many times

and total amount of money received from and total amount of money received from this person?this person?

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PART HPART H:: Remittances Remittances Received Received from all from all SSourcesources

Methods used most frequently to send money to Methods used most frequently to send money to your household over the past 12 monthsyour household over the past 12 months

Considering money received over the past 12 Considering money received over the past 12 months, did the money enable you or other h/h months, did the money enable you or other h/h members to do any of the following? members to do any of the following?

Apart from money, have you or any other Apart from money, have you or any other household members received any goods from household members received any goods from someone living abroad over the past 12 months?someone living abroad over the past 12 months?

What items (including food) have you received What items (including food) have you received over the past 12 months, what was their over the past 12 months, what was their estimated value, and how were these items sent estimated value, and how were these items sent or brought to you or brought to you

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Some preliminary results (Part D)Some preliminary results (Part D)

Of 1,985 households sampled, 65% UrbanOf 1,985 households sampled, 65% Urban Resulted in 5,200 respondents, excluding Resulted in 5,200 respondents, excluding

long-term absenceslong-term absences 94% Born in Armenia, 99% Armenian 94% Born in Armenia, 99% Armenian

citizenscitizens 1,117 people absent for 3 months or more 1,117 people absent for 3 months or more

(73% male)(73% male)

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Preliminary results (Part E)- Return Preliminary results (Part E)- Return MigrantsMigrants

593 return migrants593 return migrants 68% were male68% were male Country of last residence: 76% Russia, 7% Country of last residence: 76% Russia, 7%

Ukraine, 4% USAUkraine, 4% USA 64% worked while abroad64% worked while abroad 54% sent money or goods home while 54% sent money or goods home while

abroad (Of those who worked while abroad (Of those who worked while abroad, 79% sent money or goods)abroad, 79% sent money or goods)

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Preliminary results (Part F)- HHLD Preliminary results (Part F)- HHLD member living abroadmember living abroad

512 household members living abroad512 household members living abroad 79% male and 70% between the ages of 79% male and 70% between the ages of

25 and 49 (compared to 38% of RA 25 and 49 (compared to 38% of RA respondents)respondents)

71% married71% married Current country of residence: 84% Russia, Current country of residence: 84% Russia,

2% Ukraine, 2% USA2% Ukraine, 2% USA

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Part F (continued)Part F (continued)

65% ever sent money home (remitters)65% ever sent money home (remitters) 64% currently working (18% not work, 18% 64% currently working (18% not work, 18%

DK)DK) 76% of those who sent money did so within 76% of those who sent money did so within

first 12 months of being awayfirst 12 months of being away 91.7% of remitters were male91.7% of remitters were male Of remitters, over past 12 months, 50% sent Of remitters, over past 12 months, 50% sent

money two to three times, 31% one time, and money two to three times, 31% one time, and 19% four times or more19% four times or more

Most remitters (72%) sent $800 or less over Most remitters (72%) sent $800 or less over the past 12 monthsthe past 12 months

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Some final thoughtsSome final thoughts

Jury still out on project --Meanwhile, ILO would like to Jury still out on project --Meanwhile, ILO would like to expand the project in 2007 to include 3 new countries expand the project in 2007 to include 3 new countries in Africa and Latin America--in Africa and Latin America--

A few difficulties developing migration questions --how A few difficulties developing migration questions --how to measure net and in-kind remittances, which time to measure net and in-kind remittances, which time reference to use (miss some temporary labour reference to use (miss some temporary labour migrants)migrants)

Need more specifics about how results could be Need more specifics about how results could be applied to improve BOP estimates –computation of applied to improve BOP estimates –computation of total amount, modelling procedures, what specific data total amount, modelling procedures, what specific data needs to be collected (e.g. ideally amount of money needs to be collected (e.g. ideally amount of money sent via different sources, not just sources used)sent via different sources, not just sources used)

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Contact InformationContact Information

Jason Schachter, Ph.DJason Schachter, Ph.D

Bureau of Statistics, Room 5-51Bureau of Statistics, Room 5-51

4, Route des Morillons4, Route des Morillons

CH-1211 Geneva, SwitzerlandCH-1211 Geneva, Switzerland

Phone: +41 (0)22 799 6954 Phone: +41 (0)22 799 6954

E-mail: g1stat@ilo.orgE-mail: g1stat@ilo.org