The impact of migrant workers'remittances on the living standards of families in Morocco: A propensity score matching approach

Abstract : This article attempts to assess empirically the impact of remittances on household expenditure and relative poverty in Morocco. We apply propensity score matching methods to the 2006/2007 Moroccan Living Standards Measurement Survey. We find that migrants’ remittances can improve living standards among Moroccan households andaffect negatively the incidence of poverty.The results show a statistically significant and positive impact of hoseremittances on recipient households’ expenditures. Theyare also significantly associated with a decline in the probability of being in poverty for rural households; it decreases by 11.3 percentage points. In comparison, this probability decreases by 3 points in urban area.