Third, the exact matching approach in which each RBH is paired with NRBH has been used which minimises the difference of their PSM within the common support area and drops the rest of the households.
This expression measures mean difference in the impact of remittance income on RBH over the control group NRBH.
Let D1, D2, and D3 be the differences measured using full sample, data from common support area, and using PS matching of RBH and NRBH, respectively.
Out of this sample of 15924, 802 households (5 percent of the total) are remittance beneficiary households (RBH) and 15122 are nonremittance beneficiary households (NRBH).
This indicates that the distribution of the covariates is approximately the same across the RBH and NRBH.
Prior to matching, the comparison of the mean values of the indicators across the treated (RBH) and control group (NRBH) reveal a crude difference (that includes difference due to observed characteristics) in living standards.
Third, households that minimise the difference between PS of the two groups--treated (RBH) and control (NRBH)--are matched.
Finally, the 5th and 6th columns present the average treatment (remittances) effect on the treated (RBH) after exact matching of propensity score with control group (NRBH) which minimises the difference between treated and control groups of households after controlling for observables' characteristics along with their t-ratio to measure significance.
The results of this impact evaluation reveal that RBHs are in better position than NRBH. The results show that difference in the mean income per adult equivalent is negative but not significant in the first two exercises.
On average, RBH households own more equipment than the NRBH. A higher proportion of the RBH has access to electricity, telephone facilities and room per adult equivalent than the NRBH.
The level of female and male economic activity in RBH is significantly lower than in the NRBH. This suggests that both men and women in the households are less likely to work if they receive remittances.