The impact of gender and remittances on household expenditure patterns in Nepal

In this study, I use panel data from the Nepal Living Standards Survey to investigate the impact of gender and remittances on household expenditure patterns in Nepal between 1995/96 and 2003/04. Using a Working-Leser model, I show that both the gender of the remitter and that of the recipient have an effect on the share of the household budget devoted to schooling, consumer goods, health, durable goods and food, and that these effects are individually and jointly statistically significant. When the sample is restricted to only those households which receive remittances, I show that the budget share devoted to schooling, health and durable goods increases, and that devoted to food decreases, when remittances both are sent and received by women. These results support existing literature on migrant behavior and intra-household bargaining models and show that increased female migration and remittances would contribute positively to both economic and human development in Nepal.