Abstract
M.Com. (Economics)
This thesis focuses on the impact of remittances on the Subjective Well-being (SWB) of households in South Africa. Using data from the first three waves of the National Income Dynamics Study (NIDS), we investigate whether receiving remittances from a migrant family member leaves the remaining family members feeling more satisfied with their lives as a whole. The results from our cross-section and panel analyses indicate that remittances do indeed have a positive impact on SWB. Our findings further show that the majority of the coefficients seem robust for the type of data used (i.e. cross-sectional or panel), while also seeming robust for the type of estimation method used. This method was pooled ordered probit for cross-sectional data, and a pooled ordered probit and Random Effect Ordered Probit (REOP) model for panel data.