TY - RPRT AU - Démurger, Sylvie AU - Wang, Xiaoqian TI - Remittances and Expenditure Patterns of the Left Behinds in Rural China PY - 2016/Jan/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 9640 UR - https://www.iza.org/index.php/publications/dp9640 AB - This paper investigates how private transfers from internal migration in China affect the expenditure behaviour of families left behind in rural areas. Using data from the Rural-Urban Migration in China (RUMiC) survey, we assess the impact of remittances sent to rural households on consumption-type and investment-type expenditures. We apply propensity score matching to account for the selection of households into receiving remittances, and estimate average treatment effects on the treated. We find that remittances supplement income in rural China and lead to increased consumption rather than increased investment. Moreover, we find evidence of a strong negative impact on education expenditures, which could be detrimental to sustaining investment in human capital in poor rural areas in China. KW - propensity score matching KW - remittances KW - labour migration KW - expenditure behaviour KW - left-behind KW - China ER -