Consumption behavior of migrant households in Vietnam: Remittances, duration of stay, and the household registration system

This paper examines the determinants of the consumption gap between migrant and urban households in Vietnam, paying particular attention to the role of the household registration (ho khau) system in shaping consumption of migrant households. Our findings indicate that migrant households exhibit significantly lower consumption levels than comparable urban households. The observed gap is mainly driven by differences in non-food consumption. We also find that the restrictions imposed by the ho khau system contribute significantly to the gap. Moreover, remittances of migrant households to family members in rural regions are responsible for a considerable part of the gap. Finally, we observe that the consumption gap declines with the duration of residence of migrant households in their destination cities.