| Description |
1 online resource (43 pages) |
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text file |
| Contents |
Cover; Contents; 1 Introduction; 2 Literature review; 3 Empirical assessment; 3.1 Data and methodology; 3.2 Labor demand: Unemployment and remittances; 3.3 Labor supply: Labor force participation and remittances; 3.4 Wages and inequality; 3.4.1 Do remittances lift wages?; 3.4.2 Remittances and the labor income share; 3.4.3 How does inequality evolve?; 3.4.4 Do remittances increase informality?; 3.5 Sectoral shifts; 3.6 Regional variation; 3.7 Remittances in fragile states; 4 Conclusion; 5 Appendix; 5.1 Summary statistics; 5.2 Regional country coverage; List of Tables. |
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1 Unemployment dynamics and income flows2 Dependent variable: Labor force participation rate; 3 Dependent variable: Male labor force participation rate; 4 Dependent variable: Female labor force participation rate; 5 Wage growth and remittances; 6 Change in the labor income share and remittances; 7 Determinants of market inequality; 8 Remittances and informal employment; 9 Summary statistics; 10 Regional country coverage; List of Figures; 1 Labor force participation rates -- Quantile regressions; 2 Sectoral employment impact of remittances; 3 Sectoral employment -- Quantile regressions. |
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4 Remittances and labor force participation by region5 Remittances and informal employment by region; 6 Remittances and wages by region; 7 Impact of remittances on labor force participation rates; 8 The impact of remittances on wage growth and inequality; 9 Openness and country fragility. |
| Summary |
We present cross-country evidence on the impact of remittances on labor market outcomes. Remittances appear to have a strong impact on both labor supply and labor demand in recipient countries. These effects are highly significant and greater in size than those of foreign direct investment or offcial development aid. On the supply side, remittances reduce labor force participation and increase informality of the labor market. In addition, male and female labor supply show significantly different sensitivities to remittances. On the demand side, remittances reduce overall unemployment but benefit mostly lower-wage, lowerproductivity nontradables industries at the expense of high-productivity, high-wage tradables sectors. As a consequence, even though inequality declines as a result of larger remittances, average wage and productivity growth declines, the latter more strongly than the former leading to an increase in the labor income share. In fragile states, in contrast, remittances impose a positive externality, possibly because the tradables sector tends to be underdeveloped. Our findings indicate that reforms to foster inclusive growth need to take into account the role of remittances in order to be successful. |
| Local Note |
eBooks on EBSCOhost EBSCO eBook Subscription Academic Collection - North America |
| Subject |
Emigrant remittances -- United States.
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Emigrant remittances. |
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United States. |
| Genre/Form |
Electronic books.
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| Added Author |
Ernst, Ekkehard.
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Fullenkamp, Connel.
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| Other Form: |
Print version: Chami, Ralph. Are Remittances Good for Labor Markets in LICs, MICs and Fragile States? Washington, D.C. : International Monetary Fund, ©2018 9781484353615 |
| ISBN |
1484356136 |
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9781484356135 (electronic book) |
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