International migration and informal social protection in rural Mozambique

This paper uses a unique household survey from two southern regions in Mozambique to examine the extent to which dispatching family labour abroad is a source of informal social protection for households left behind. We do so by studying the relation between migration, remittances and participation in groups that provide informal social services to migrant-sending communities. We distinguish between a range of community associations related to insurance, credit and production provision and we further correct for the endogenous choice of group membership. Results show that migration associated with remittances increase community group participation. In particular, while there is no significant relationship with group membership related to credit or self-help activities, remittance recipients are more likely to join groups that provide insurance. These findings point to the role of migration as a source of social protection for migrant-sending communities at origin.