Garbage In, Gospel Out? Controlling for the Underreporting of Remittances
AbstractEmpirical 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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Date of creation: 01 Sep 2008
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-10-28 (All new papers)
- NEP-LAB-2008-10-28 (Labour Economics)
- NEP-MIG-2008-10-28 (Economics of Human Migration)
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