Analyzing the impact of remittances on household food security in protracted crisis settings: Evidence from North Wollo Zone, Ethiopia

Abstract

Remittance flows through migrant networks constitute an important livelihood strategy for households facing persistent shocks, contributing to improved welfare and reduced vulnerability, particularly in protracted crisis contexts. This study examines the effect of remittances on household food security in the North Wollo Zone of Ethiopia. A stratified multi-stage cluster sampling technique was employed to select 384 households, comprising both remittance recipients and non-recipients, from five purposively chosen kebeles. Primary data were collected through structured household surveys, complemented by key informant interviews and focus group discussions. The analysis integrates descriptive statistics with econometric estimation using Propensity Score Matching (PSM) to identify the causal impact of remittance income on food security outcomes. The findings reveal that remittances have a statistically significant and positive effect on household food security. Specifically, 8.3% of remittance-receiving households were food secure, compared to only 2.5% among non-receiving households. The estimated average treatment effect on the treated (ATT = -2.7, p < 0.001) indicates a meaningful reduction in food insecurity attributable to remittance inflows. Food security outcomes also vary across household characteristics. Older-headed households (aged 60 and above) demonstrate relatively better food security status, while land ownership and participation in non-farm income-generating activities are positively associated with improved outcomes. Thus, remittances function as informal social protection mechanisms in crisis-affected settings, enhancing household resilience to food insecurity. The results indicate that remittances strengthen household resilience against food insecurity, but their efficacy depends on more general socioeconomic and contextual conditions, thus they should not be seen as a sufficient or assured condition.

Keywords: Ethiopia; Food security; North Wollo; Protracted crises; Remittances; Resilience