IMPACT OF MIGRANT REMITTANCES ON THE HOUSEHOLDS' MONETARY WELFARE IN LOW KABYLIE

From a survey on the standard of living of the households in Basse Kabylie, Algeria, this paper aims to evaluate the effects of migrants' remittances on the household's monetary welfare in this region. The remittances coming from abroad contributed and will contribute for few years to the improvement of the monetary welfare of the households. They represent considerable sums which feed the budget of the concerned households. They are estimated, for the year 2005, at 259980 DA per household. On this basis, the amount of the transfers received into Basse Kabylie can be then estimated at more than 6,7 billion DA witch correspond to 78,8 million euros. The analysis of the profiles of monetary poverty indicates that the incidence of monetary poverty of households receiving the remittances is lower than that of other households. The incidence of total poverty accounts for 5,4% only for the households profiting from these incomes, whereas it amounts to 17,5% in the other group. The econometric application confirms this result, since it puts under light the positive and significant role of remittances in the improvement of the monetary welfare of the households. The fact of profiting from transfers coming from abroad, ceteris paribus, increases the expenditure per capita by 29%. The Probit estimation of the determinants of poverty households confirm this result since the coefficient relating to remittances is very significant and negative. The fact of profiting from remittances, reduce the probability that a household be poor by 7,2%.