Template-type: ReDIF-Paper 1.0 Author-Name: Andersson, L. Author-Email: lisa.andersson@economics.gu.se Author-Workplace-Name: Department of Economics, University of Gothenburg Title: Migration, remittances and household welfare in Ethiopia Abstract: This paper investigates the effect of international remittances and migration on household welfare in Ethiopia. We employ both subjective a households subjective economic well-being and objective measures asset holdings and asset accumulation to define household welfare. A matching approach is applied to address self-selection, and by exploiting information before and after the households began receiving remittances, the study sheds light on the changes in welfare associated with international migration and remittances. The results reveal that remittances have a significant impact on a welfare variable that has previously not received much attention in the migration literature, namely household subjective economic well-being. In addition, we find that remittances have positive effects on consumer asset accumulation, especially in rural areas, but no effect on productive assets. Classification-JEL: F22, F24, O15 Keywords: migration, remittances, household welfare, economic development, human development, income distribution, asset acculumation, Ethiopia Series: UNU-MERIT Working Papers Creation-Date: 20140131 Number: 2014-004 File-URL: https://unu-merit.nl/publications/wppdf/2014/wp2014-004.pdf File-Format: application/pdf File-Size: 333 Kb Handle: RePEc:unm:unumer:2014004