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Remittances and the Prevalence of Working Poor

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  • Jean-Louis COMBES

    ()
    (Centre d'Etudes et de Recherches sur le Développement International)

  • Christian EBEKE
  • Mathilde MAUREL

Abstract

This paper focuses on the relationships between remittances and the share of individuals working for less than 2$ US per day. It is based on an original panel dataset containing information related to remittances in about 80 developing countries and to the number of workers being paid less than 2 dollars per day as well. Even after factoring in the endogeneity of remittance inflows the results suggest that remittances lead to a decrease in the prevalence of working poor in receiving economies. This effect is stronger in a context of high macroeconomic volatility but is mitigated by the unpredictability of remittances: remittances are more effective to decreasing the share of working poor when they are easily predictable. Moreover, domestic finance and remittances appear as substitutes: remittances are less efficient in reducing the prevalence of working poor whenever finance is available.

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File URL: http://publi.cerdi.org/ed/2011/2011.09.pdf
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Bibliographic Info

Paper provided by CERDI in its series Working Papers with number 201109.

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Length: 37
Date of creation: 2011
Date of revision:
Handle: RePEc:cdi:wpaper:1248

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Keywords: Working poor; Remittances; shocks; Financial Development;

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References

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  1. Jean-Louis Combes & Christian Ebeke, 2011. "Remittances and Household Consumption Instability in Developing Countries," Working Papers halshs-00552245, HAL.
  2. Catalina Amuedo-Dorantes & Susan Pozo, 2006. "Migration, Remittances, and Male and Female Employment Patterns," American Economic Review, American Economic Association, vol. 96(2), pages 222-226, May.
  3. Amuedo-Dorantes, Catalina & Pozo, Susan, 2004. "Workers' Remittances and the Real Exchange Rate: A Paradox of Gifts," World Development, Elsevier, vol. 32(8), pages 1407-1417, August.
  4. Dustmann, Christian & Kirchkamp, Oliver, 2000. "The Optimal Migration Duration and Activity Choice after Re-migration," Sonderforschungsbereich 504 Publications, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim 00-39, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
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Cited by:
  1. Jean-Louis COMBES & Mathilde MAUREL & Christian EBEKE, 2013. "The effect of remittances prior to an election," Working Papers 201307, CERDI.
  2. Miftah, Amal & Bouoiyour, Jamal, 2014. "The impact of Migrant Workers ' Remittances on the Living Standards of families in Morocco: a Propensity Score Matching Approach," Economics Papers from University Paris Dauphine 123456789/12802, Paris Dauphine University.
  3. World Bank, 2012. "Bangladesh - Towards Accelerated, Inclusive and Sustainable Growth : Opportunities and Challenges, Volume 2. Main Report," World Bank Other Operational Studies 12121, The World Bank.

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