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Garbage In, Gospel Out? Controlling for the Underreporting of Remittances

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Author Info
David A. Grigorian
Tigran A. Melkonyan
J. Scott Shonkwiler

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Abstract

Empirical studies that use self-reported data on remittances to measure the latter's impact on microeconomic incentives mostly ignore the potential errors associated with reporting/measurement issues. An econometric procedure to control for these errors is developed and applied to household-level data from Armenia. We find evidence of systematic under-reporting of remittances. After controlling for this, we find a strong negative impact of remittances on incentives to work.

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Paper provided by International Monetary Fund in its series IMF Working Papers with number 08/230.

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Length: 19 pages
Date of creation: 30 Sep 2008
Date of revision:
Handle: RePEc:imf:imfwpa:08/230

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Related research
Keywords: Workers remittances ; Armenia ; Data collection ; Financial incentives ; Labor supply ; Economic models ;

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    Other versions:
  2. Woodruff, Christopher & Zenteno, Rene, 2007. "Migration networks and microenterprises in Mexico," Journal of Development Economics, Elsevier, vol. 82(2), pages 509-528, March. [Downloadable!] (restricted)
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  4. Goldfarb, Robert & Havrylyshyn, Oli & Mangum, Stephen, 1984. "Can remittances compensate for manpower outflows : The case of Philippine physicians," Journal of Development Economics, Elsevier, vol. 15(1-3), pages 1-17. [Downloadable!] (restricted)
  5. Pablo Acosta & Cesar Calderón & Pablo Fajnzylber & Humberto López, 2006. "Remittances and Development in Latin America," The World Economy, Blackwell Publishing, vol. 29(7), pages 957-987, 07. [Downloadable!] (restricted)
  6. Freund, Caroline & Spatafora, Nikola, 2008. "Remittances, transaction costs, and informality," Journal of Development Economics, Elsevier, vol. 86(2), pages 356-366, June. [Downloadable!] (restricted)
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  8. David A. Grigorian & Tigran A. Melkonyan, 2008. "Microeconomic Implications of Remittances in an Overlapping Generations Model with Altruism and Self-Interest," IMF Working Papers 08/19, International Monetary Fund. [Downloadable!]
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  12. Alberto Alesina & Paola Giuliano, 2007. "The Power of the Family," IZA Discussion Papers 2750, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  13. Thomas Bauer & Klaus F. Zimmermann, 1999. "Assessment of Possible Migration Pressure and its Labour Market Impact Following EU Enlargement to Central and Eastern Europe," IZA Research Reports 3, Institute for the Study of Labor (IZA). [Downloadable!]
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