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Remittances, Labour Supply and Activity of Household Members Left-Behind

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  • Florin Vadean
  • Teresa Randazzo
  • Matloob Piracha

Abstract

This paper analyses the role of remittances on labour supply and activity of household members left behind, by explicitly distinguishing between different types of self-employment. Contrary to the existing evidence, we find no ‘dependency’ effect of remittances. Our results show that remittances received by households in Tajikistan decrease the probability of wage employment and increase that of small-scale self-employment activities of men staying behind, without affecting the number of job-specific hours worked. Any positive effect on economic development would be, however, limited, as self-employment is in rather small-scale activities that do not generate a regular income stream.

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  • Florin Vadean & Teresa Randazzo & Matloob Piracha, 2019. "Remittances, Labour Supply and Activity of Household Members Left-Behind," Journal of Development Studies, Taylor & Francis Journals, vol. 55(2), pages 278-293, February.
    • Handle: RePEc:taf:jdevst:v:55:y:2019:i:2:p:278-293
    DOI: 10.1080/00220388.2017.1404031
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    Cited by:

    1. Hajer Habib, 2023. "Remittances and Labor Supply: Evidence from Tunisia," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(2), pages 1870-1899, June.
    2. Debelo Bedada Yadeta & Fetene Bogale Hunegnaw, 2022. "Effect of International Remittance on Economic Growth: Empirical Evidence from Ethiopia," Journal of International Migration and Integration, Springer, vol. 23(2), pages 383-402, June.
    3. Ainembabazi John Herbert & Francis H. Kemeze, 2022. "Working Paper 366 - Remittances and employment in family-owned firms: Evidence from Nigeria and Uganda," Working Paper Series 2492, African Development Bank.
    4. Francois, John Nana & Ahmad, Nazneen & Keinsley, Andrew & Nti-Addae, Akwasi, 2022. "Heterogeneity in the long-run remittance-output relationship: Theory and new evidence," Economic Modelling, Elsevier, vol. 110(C).
    5. Laurent Bossavie & Çağlar Özden, 2023. "Impacts of Temporary Migration on Development in Origin Countries," The World Bank Research Observer, World Bank, vol. 38(2), pages 249-294.
    6. Wen Wu & Leow Hon-Wei & Siyao Yang & Iskandar Muda & Zhaoyi Xu, 2023. "Nexus between financial inclusion, workers’ remittances, and unemployment rate in Asian economies," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-10, December.
    7. Waqas Shair & Muhammad Tariq Majeed, "undated". "Labor Market Outcomes Of Non-Migrant Members In Response To Remittances: Evidence From Provincial Capital Of Punjab And Khyber Pakhtunkhawa (Kpk)," Review of Socio - Economic Perspectives 202047, Reviewsep.

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