Remittances and subjective well-being: A static versus dynamic panel approach to happiness

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2 Citations (Scopus)


Using all five waves of the National Income Dynamics Study (NIDS) panel dataset, we examine the effect of domestic remittances on the static and dynamic subjective well-being (SWB) of recipient individuals in South Africa, by using a random effects ordered probit model that accounts for individual heterogeneity. Moreover, we check the robustness of our static model results by making use of an instrumental variable for migrants’ remittances. Two major empirical findings emerge from this paper: firstly, domestic remittances are consistently found to have a positive and statistically significant impact on the happiness of recipient individuals. Moreover, this finding persists in both the static and dynamic panel models. Secondly, the coefficient on lagged SWB (derived from the dynamic model) is found to be positive and statistically significant, confirming that SWB today is significantly influenced by SWB in the past.

Original languageEnglish
Pages (from-to)761-774
Number of pages14
JournalMigration Letters
Issue number6
Publication statusPublished - Nov 2021


  • East Central Europe
  • Hierarchical cluster analysis
  • Welfare regime
  • Welfare state

ASJC Scopus subject areas

  • Demography
  • Geography, Planning and Development


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