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The Impact of Migration and Remittances on Labor Supply in Tajikistan

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  • Enerelt Murakami
  • Eiji Yamada
  • Erica Sioson

Abstract

major labor migrant sending and remittance dependent country in Central Asia. We contribute to the literature in two ways. First, we effectively address the common methodological issues that result in biased estimates in analyses of migration and remittances. Our empirical work accounts for the endogeneity of migration and remittances with respect to the labor supply decisions of household members left at home, and for the self-selection of migrants and remittance senders through the application of a control function approach. Second, we apply our empirical model to unique high-frequency household panel data that further helps to remedy methodological problems present in cross-sectional studies. The findings suggest that having a migrant member and receiving remittances increases the reservation wages of the household members left at home, thereby reducing their labor supply and economic activity rate. This result is robust to different model specifications and definitions of migration and remittances.

Suggested Citation

  • Enerelt Murakami & Eiji Yamada & Erica Sioson, 2018. "The Impact of Migration and Remittances on Labor Supply in Tajikistan," Working Papers 181, JICA Research Institute.
    • Handle: RePEc:jic:wpaper:181
    DOI: 10.18884/00000968
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    Cited by:

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    5. Ghimire, Tinusha & Harou, Aurélie P. & Balasubramanya, Soumya, 2023. "Migration, gender labor division and food insecurity in Tajikistan," Food Policy, Elsevier, vol. 116(C).

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    More about this item

    Keywords

    Migration; remittances; labor market participation; economic activity rate; endogenous switching; Tajikistan;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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