The impact of remittances and equivalence scales on poverty in Tajikistan

The aim of this paper is to study the impact of remittances from labour migrants on welfare, as well as the impact of the use of equivalence scales on poverty, in Tajikistan. The magnitude of remittances sent back is fairly well known from official statistics (e.g. the amount of remittances is regularly monitored by the balance of payment at the Central Bank). In 2009 a change in the flow of money from abroad occurred, and volumes dropped, but it was unknown to what extent; its impact on poverty is still officially unknown. This paper describes a project aimed at conducting a survey to investigate this impact. It would not be possible to do this kind of analysis with a traditional sample survey, since it would generate only a small selection of migrant households. Instead, the new Migration, Remittances and Poverty Survey was used, which was conducted by the Tajik State Statistical Office in August 2010 using an adaptive sampling design from a set of enumeration areas selected mainly from the 2009 Integrated Household Budget Survey (IHBS) and showing households with remittances. To evaluate the impact of equivalence scales on poverty, new scales have been estimated on the basis of consumption expenditure from the 2009 IHBS.