Kerala's Remittance Economy: A Micro-Level Analysis of Household Income Effects

Abstract

This study investigates the micro-level effects of remittances on household income in Kerala, India, where significant migration to foreign countries, particularly the Gulf states, has led to substantial remittance inflows. Utilizing a mixed-methods approach, the research combines quantitative data from a structured survey of 300 remittance-receiving households with qualitative insights from in-depth interviews with household heads and community leaders. The analysis focuses on how remittances influence household income, consumption, savings, and investment behaviors, while also examining their effects on income inequality and overall quality of life. Quantitative findings reveal that remittances significantly enhance household income and improve access to education, healthcare, and housing. However, disparities in the distribution of remittances can exacerbate income inequality among different socio-economic groups. Qualitative insights highlight the socio-cultural transformations driven by remittances, including shifts in family dynamics and aspirations. This research underscores the importance of remittances as a stabilizing economic force, while also raising critical questions about their long-term impact on social mobility and community cohesion. The findings are expected to inform policymakers and stakeholders in designing targeted financial inclusion programs to better support remittance-dependent households, ultimately contributing to sustainable development in the region.