IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this paper

Split Decisions: Family finance when a policy discontinuity allocates overseas work

Listed author(s):
  • Michael Clemens

    ()

    (Center for Global Development)

  • Erwin Tiongson

    ()

    (World Bank, AIM, and IZA)

Labor markets are increasingly global. Overseas work can enrich households but also split them geographically, with ambiguous net effects on decisions about work, investment, and education. These net effects, and their mechanisms, are poorly understood. We study a policy discontinuity in the Philippines that resulted in quasi-random assignment of temporary, partial-household migration to high-wage jobs in Korea. This allows unusually reliable measurement of the reduced-form effect of these overseas jobs on migrant households. A purpose-built survey allows nonexperimental tests of different theoretical mechanisms for the reduced-form effect. We also explore how reliably the reduced-form effect could be measured with standard observational estimators. We find large effects on spending, borrowing, and human capital investment, but no effects on saving or entrepreneurship. Remittances appear to overwhelm household splitting as a causal mechanism.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.cream-migration.org/publ_uploads/CDP_34_12.pdf
Download Restriction: no

Paper provided by Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London in its series CReAM Discussion Paper Series with number 1234.

as
in new window

Length:
Date of creation: Nov 2012
Handle: RePEc:crm:wpaper:1234
Contact details of provider: Postal:
Drayton House, 30 Gordon Street, London WC1H 0AX

Phone: +44 (0)20 7679 5888
Fax: +44 (0)20 7916 2775
Web page: http://www.cream-migration.org/

More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as
in new window

  1. Amuedo-Dorantes, Catalina & Georges, Annie & Pozo, Susan, 2008. "Migration, Remittances and Children’s Schooling in Haiti," IZA Discussion Papers 3657, Institute for the Study of Labor (IZA).
  2. Gordon Dahl & Lance Lochner, 2008. "The Impact of Family Income on Child Achievement: Evidence from the Earned Income Tax Credit," NBER Working Papers 14599, National Bureau of Economic Research, Inc.
  3. Cally Ardington & Anne Case & Victoria Hosegood, 2007. "Labor Supply Responses to Large Social Transfers: Longitudinal Evidence from South Africa," NBER Working Papers 13442, National Bureau of Economic Research, Inc.
  4. Corak, Miles & Heisz, Andrew, 1999. "Death and Divorce: The Long-term Consequences of Parental Loss on Adolescents," Analytical Studies Branch Research Paper Series 1999135e, Statistics Canada, Analytical Studies Branch.
  5. Nava Ashraf & Diego Aycinena & Claudia Martínez & Dean Yang, 2011. "Remittances and the Problem of Control: A Field Experiment Among Migrants from El Salvador," Working Papers wp341, University of Chile, Department of Economics.
  6. Jonathan Morduch, 1995. "Income Smoothing and Consumption Smoothing," Harvard Institute of Economic Research Working Papers 1727, Harvard - Institute of Economic Research.
  7. R. Glenn Hubbard, 1997. "Capital-Market Imperfections and Investment," NBER Working Papers 5996, National Bureau of Economic Research, Inc.
  8. Udry, Christopher, 1996. "Gender, Agricultural Production, and the Theory of the Household," Journal of Political Economy, University of Chicago Press, vol. 104(5), pages 1010-1046, October.
  9. Carlo Alcaraz & Daniel Chiquiar & Alejandrina Salcedo, 2010. "Remittances, Schooling, and Child Labor in Mexico," Working Papers 2010-14, Banco de México.
  10. Paul Gertler & David I. Levine & Minnie Ames, 2003. "Schooling and Parental Death," HEW 0303001, EconWPA.
  11. Macours, Karen & Vakis, Renos, 2010. "Seasonal Migration and Early Childhood Development," World Development, Elsevier, vol. 38(6), pages 857-869, June.
  12. Austin Nichols, 2009. "Causal inference," DC09 Stata Conference 8, Stata Users Group.
  13. Booth, Alison L & Tamura, Yuji, 2009. "Impact of Paternal Temporary Absence on Children Left Behind," CEPR Discussion Papers 7440, C.E.P.R. Discussion Papers.
  14. Nancy Qian, 2008. "Missing Women and the Price of Tea in China: The Effect of Sex-Specific Earnings on Sex Imbalance," The Quarterly Journal of Economics, Oxford University Press, vol. 123(3), pages 1251-1285.
  15. Guido Imbens & Karthik Kalyanaraman, 2012. "Optimal Bandwidth Choice for the Regression Discontinuity Estimator," Review of Economic Studies, Oxford University Press, vol. 79(3), pages 933-959.
  16. John Gibson & David McKenzie & Steven Stillman, 2011. "The Impacts of International Migration on Remaining Household Members: Omnibus Results from a Migration Lottery Program," The Review of Economics and Statistics, MIT Press, vol. 93(4), pages 1297-1318, November.
  17. Randall K. Q. Akee & William E. Copeland & Gordon Keeler & Adrian Angold & E. Jane Costello, 2010. "Parents' Incomes and Children's Outcomes: A Quasi-experiment Using Transfer Payments from Casino Profits," American Economic Journal: Applied Economics, American Economic Association, vol. 2(1), pages 86-115, January.
  18. Vivi Alatas & Abhijit Banerjee & Arun G Chandrasekhar & Rema Hanna & BENJAMIN A Olken, 2012. "Network Structure and the Aggregation of Information: Theory and Evidence from Indonesia," Working Papers id:5106, eSocialSciences.
  19. Antman, Francisca M., 2012. "The Impact of Migration on Family Left Behind," IZA Discussion Papers 6374, Institute for the Study of Labor (IZA).
  20. Edmonds, Eric V. & Schady, Norbert, 2008. "Poverty alleviation and child labor," Policy Research Working Paper Series 4702, The World Bank.
  21. Catia Batista, Aitor Lacuesta and Pedro C. Vicente, 2009. "Testing the 'Brain Gain' Hypothesis: MIcro Evidence from Cape Verde," The Institute for International Integration Studies Discussion Paper Series iiisdp282, IIIS.
  22. Lisa Gennetian, 2005. "One or two parents? Half or step siblings? The effect of family structure on young children's achievement," Journal of Population Economics, Springer;European Society for Population Economics, vol. 18(3), pages 415-436, 09.
  23. Christopher J. Ruhm, 2004. "Parental Employment and Child Cognitive Development," Journal of Human Resources, University of Wisconsin Press, vol. 39(1).
  24. David S. Lyle, 2006. "Using Military Deployments and Job Assignments to Estimate the Effect of Parental Absences and Household Relocations on Children's Academic Achievement," Journal of Labor Economics, University of Chicago Press, vol. 24(2), pages 319-350, April.
  25. Kaushik Basu, 2004. "Gender and Say A Model of Household Behavior with Endogenously-determined Balance of Power," Harvard Institute of Economic Research Working Papers 2054, Harvard - Institute of Economic Research.
  26. Dennis Görlich & Toman Omar Mahmoud & Christoph Trebesch, 2007. "Explaining Labour Market Inactivity in Migrant-Sending Families: Housework, Hammock, or Higher Education," Kiel Working Papers 1391, .
  27. Dilip Ratha & Ani Silwal, 2012. "Remittance Flows in 2011 : An Update," World Bank Other Operational Studies 16176, The World Bank.
  28. Karen Macours & Norbert Schady & Renos Vakis, 2012. "Cash Transfers, Behavioral Changes, and Cognitive Development in Early Childhood: Evidence from a Randomized Experiment," PSE - Labex "OSE-Ouvrir la Science Economique" halshs-00754593, HAL.
  29. Shing-Yi Wang, 2012. "Credit Constraints, Job Mobility, and Entrepreneurship: Evidence from a Property Reform in China," The Review of Economics and Statistics, MIT Press, vol. 94(2), pages 532-551, May.
  30. Francine D. Blau & Adam J. Grossberg, 1990. "Maternal Labor Supply and Children's Cognitive Development," NBER Working Papers 3536, National Bureau of Economic Research, Inc.
  31. McKenzie, David & Gibson, John & Stillman, Steven, 2006. "How Important Is Selection? Experimental vs. Non-Experimental Measures of the Income Gains from Migration," IZA Discussion Papers 2087, Institute for the Study of Labor (IZA).
  32. Kevin Lang & Jay L. Zagorsky, 2001. "Does Growing up with a Parent Absent Really Hurt?," Journal of Human Resources, University of Wisconsin Press, vol. 36(2), pages 253-273.
  33. Duflo, Esther & Glennerster, Rachel & Kremer, Michael, 2008. "Using Randomization in Development Economics Research: A Toolkit," Handbook of Development Economics, Elsevier.
  34. Rapoport, Hillel & Docquier, Frederic, 2006. "The Economics of Migrants' Remittances," Handbook on the Economics of Giving, Reciprocity and Altruism, Elsevier.
  35. Marianne E. Page & Ann Huff Stevens, 2004. "The Economic Consequences of Absent Parents," Journal of Human Resources, University of Wisconsin Press, vol. 39(1).
  36. Pascaline Dupas & Jonathan Robinson, 2011. "Why Don't the Poor Save More? Evidence from Health Savings Experiments," NBER Working Papers 17255, National Bureau of Economic Research, Inc.
  37. Steffen Reinhold & Kevin Thom, 2013. "Migration Experience and Earnings in the Mexican Labor Market," Journal of Human Resources, University of Wisconsin Press, vol. 48(3), pages 768-820.
  38. Bruce D. Meyer & James X. Sullivan, 2008. "Changes in the Consumption, Income, and Well-Being of Single Mother Headed Families," American Economic Review, American Economic Association, vol. 98(5), pages 2221-2241, December.
  39. Gemechu Ayana Aga & Christian Eigen-Zucchi & Sonia Plaza & Ani Rudra Silwal, 2013. "Migration and Development Brief, No. 20," World Bank Other Operational Studies 17020, The World Bank.
  40. Kane, Thomas J, 1994. "College Entry by Blacks since 1970: The Role of College Costs, Family Background, and the Returns to Education," Journal of Political Economy, University of Chicago Press, vol. 102(5), pages 878-911, October.
  41. J. Edward Taylor & Alejandro López-Feldman, 2007. "Does Migration Make Rural Households More Productive? Evidence from Mexico," Working Papers 07-10, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
  42. Gustavo J. Bobonis, 2009. "Is the Allocation of Resources within the Household Efficient? New Evidence from a Randomized Experiment," Journal of Political Economy, University of Chicago Press, vol. 117(3), pages 453-503, 06.
  43. Keane, Michael P & Wolpin, Kenneth I, 2001. "The Effect of Parental Transfers and Borrowing Constraints on Educational Attainment," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 42(4), pages 1051-1103, November.
  44. David McKenzie & John Gibson & Steven Stillman, 2006. "How Important is Selection? Experimental vs Non-experimental Measures of the Income Gains of Migration," Working Papers 06_02, Motu Economic and Public Policy Research.
  45. Bardhan, Pranab & Udry, Christopher, 1999. "Development Microeconomics," OUP Catalogue, Oxford University Press, number 9780198773719, December.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:crm:wpaper:1234. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CReAM Administrator)

or (Thomas Cornelissen)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.