Bontch-Osmolovski, MikhailLokshin, MichaelGlinskaya, Elena2012-03-302012-03-302010Review of Development Economics13636669https://hdl.handle.net/10986/4724Using two rounds of nationally representative household survey data in this study, we measure the impact on poverty in Nepal of local and international migration for work. We apply an instrumental variables approach to deal with nonrandom selection of migrants and simulate various scenarios for the different levels of migration comparing observed and counterfactual household expenditure distribution. Our results indicate that one-fifth of the poverty reduction in Nepal occurring between 1995 and 2004 can be attributed to higher levels of work-related migration and remittances sent home. We also show that while the increase in international work-related migration was the leading cause of this poverty reduction, domestic migration also played an important role. Our findings demonstrate that strategies for economic growth and poverty reduction in Nepal should consider aspects of the dynamics of domestic and international migration.ENInternational Migration F220Measurement and Analysis of Poverty I320Welfare and Poverty: Government ProgramsProvision and Effects of Welfare Programs I380Geographic Labor MobilityImmigrant Workers J610Microeconomic Analyses of Economic Development O120Economic Development: Regional, Urban, and Rural AnalysesTransportation O180Urban, Rural, and Regional Economics: Regional MigrationRegional Labor MarketsPopulationNeighborhood Characteristics R230Journal ArticleWorld Bank