The study estimates the extent and structure of poverty in Lesotho, based on a recent Household Budget Survey, using additive decomposable poverty indices. A special feature of Lesotho is that a high proportion of the male labour force is employed in the Republic of South Africa. Household members left behind, and the economy as a whole, are very dependent on miners' remittances. As part of our analysis, we simulate the effects on the extent and structure of poverty of the complete termination of these remittances.
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Gustafsson et al. (1993) studied this question.