Remittances and the Prevalence of Working Poor
AbstractThis 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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Bibliographic InfoPaper provided by HAL in its series Working Papers with number halshs-00585004.
Date of creation: 11 Apr 2011
Date of revision:
Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00585004/en/
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Working poor; Remittances; shocks; Financial Development;
Other versions of this item:
- Jean-Louis Combes & Christian Ebeke & Mathilde Maurel & Thierry Yogo, 2011. "Remittances and the prevalence of working poor," UniversitÃ© Paris1 PanthÃ©on-Sorbonne (Post-Print and Working Papers) halshs-00587797, HAL.
- Jean-Louis COMBES & Christian EBEKE & Mathilde MAUREL, 2011. "Remittances and the Prevalence of Working Poor," Working Papers 201109, CERDI.
- Jean-Louis Combes & Christian Ebeke & Mathilde Maurel & Thierry Yogo, 2011. "Remittances and the prevalence of working poor," Documents de travail du Centre d'Economie de la Sorbonne 11021, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
- O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-04-23 (All new papers)
- NEP-DEV-2011-04-23 (Development)
- NEP-MIG-2011-04-23 (Economics of Human Migration)
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