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Labor Supply Response to International Migration and Remittances in the Republic

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Author Info
Evans Jadotte () (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona)

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Abstract

The Republic of Haiti is the prime international remittances recipient country in the Latin American and Caribbean (LAC) region relative to its gross domestic product (GDP). The downside of this observation may be that this country is also the first exporter of skilled workers in the world by population size. The present research uses a zero-altered negative binomial (with logit inflation) to model households’ international migration decision process, and endogenous regressors’ Amemiya Generalized Least Squares method (instrumental variable Tobit, IV-Tobit) to account for selectivity and endogeneity issues in assessing the impact of remittances on labor market outcomes. Results are in line with what has been found so far in this literature in terms of a decline of labor supply in the presence of remittances. However, the impact of international remittances does not seem to be important in determining recipient households’ labor participation behavior, particularly for women.

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File URL: http://www.ecap.uab.es/RePEc/doc/wpdea0808.pdf
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Publisher Info
Paper provided by Department of Applied Economics at Universitat Autonoma of Barcelona in its series Working Papers with number wpdea0808.

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Length: 31 pages
Date of creation: Sep 2008
Date of revision:
Handle: RePEc:uab:wprdea:wpdea0808

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Related research
Keywords: Republic of Haiti; international migration; remittances; labor supply;

Find related papers by JEL classification:
C39 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Other
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

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This page was last updated on 2009-11-26.

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