The Impact of Circular Migration on a Village Economy1

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Abstract
Remittances from urban informal sector earnings are an important contribution to rural income in densely populated Java. This paper examines a village economy in which a high proportion of households rely on such remittances. It analyses household income and income per capita according to whether or not households have at least one circular migrant, and by the sex and age of the household head. Remittances from short-term circular migration push many households into the middle and upper income ranges. However, the wealthiest households continue to rely on traditional high earning activities and do not depend on remittances. The poorest households are scattered among those who rely on remittances and those still totally dependent upon traditional low earning village activities, regardless of the sex and age of the household head.

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