Abstract:
n this paper I study the impact of remittances on household welfare in Kyrgyzstan. I deploy
asset indices calculated using Principal Component Analysis and asset accumulation over four
years (2010-2013) to measure the average effect of remittances on household well-being. The
Propensity Score matching method is applied to address the self-selection to receive
remittances and the 2010 data on asset holdings is used to add the pre-treatment information on
assets. The study finds that remittances have a negative impact on consumer asset holdings and
the accumulation of productive assets over four year-period.
Keywords: remittances; Propensity Score Matching; Principal Component Analysis.