The effects of migration and remittances on two Lebanese villages

Abstract

<p>This thesis studies the effects of migration and remittances on two villages in south east Lebanon. The human capital theory of migration, and that of migration and remittances which is developed by Stark and Lucas (1985) and Lucas and Stark (1988) constitute the conceptual framework of the research. Data for the thesis were gathered by surveying households in the Muslim village of Lala, and the neighbouring Christian village of Khirbit Kanafar. These data immediately reflect two realities: the internal migration of Khirbit Kanafar residents, and the international emigration of those from Lala. Moreover, remittances to Khirbit Kanafar are almost non-existent and those to Lala are massive. Based on the theoretical synthesis, hypotheses were developed and later tested using three multiple regression models: one for remittances to Lala, and the other two are for the domestic income in each of the villages. A finding from the remittance model supports the theoretical hypothesis that sons in their early years of migration can not and do not remit. Such migrants are likely to face unpredictable job prospects and are usually in need of cash to get established. Once migrant sons are established, remittances to their families of orientation increase and continue to flow (at a slower rate) fifteen or more years after emigration. This reflects not only the apparent permanency of migrant sons' commitment to the insurance contract they struck with their families, but also to a continued sense of altruism towards them. Another finding that concurs with the theory pertains to migrants' rural investments which are facilitated by residual family members and is argued here to be mutually beneficial. Altruism emerges to be a greater motivation for remittances than self-interest and a familial insurance-type contract, a finding that detracts from the theory. Similarly, emigration does not appear to be a family strategy to increase income by adopting new agricultural techniques.</p>