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The Effect of Remittances on Labour Supply in the Republic of Haiti

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  • Evans Jadotte
  • Xavier Ramos

Abstract

We examine the labour supply effect of remittances in the Republic of Haiti, the prime international remittances recipient country in the Latin American and Caribbean (LAC) region relative to its GDP. Unlike previous empirical literature we address three econometric issues that may bias the estimates. We account for endogeneity of the remittances with respect to labour supply, for the zero-inflated nature of our dependent variable, hours of work, and for the self-selection of the migrant sample. Our results are in line with previous literature, and point to a decline of labour supply in the presence of remittances. However, contrary to previous findings, the labour market response to remittances of female household heads is not as sensitive as male’s.

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  • Evans Jadotte & Xavier Ramos, 2016. "The Effect of Remittances on Labour Supply in the Republic of Haiti," Journal of Development Studies, Taylor & Francis Journals, vol. 52(12), pages 1810-1825, December.
    • Handle: RePEc:taf:jdevst:v:52:y:2016:i:12:p:1810-1825
    DOI: 10.1080/00220388.2016.1156089
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    2. Asatryan, Zareh & Bittschi, Benjamin & Doerrenberg, Philipp, 2017. "Remittances and public finances: Evidence from oil-price shocks," Journal of Public Economics, Elsevier, vol. 155(C), pages 122-137.

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    More about this item

    JEL classification:

    • C39 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Other
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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