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Remittances and the Prevalence of Working Poor

Author

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  • Jean-Louis Combes

    (CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique)

  • Christian Hubert Ebeke

    () (CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique)

  • Mathilde Maurel

    () (CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique)

  • Thierry Yogo

    (CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique)

Abstract

This paper focuses on the relationships between remittances and the share of individuals working for less than 2$ US per day. It is based on an original panel dataset containing information related to remittances in about 80 developing countries and to the number of workers being paid less than 2 dollars per day as well. Even after factoring in the endogeneity of remittance inflows the results suggest that remittances lead to a decrease in the prevalence of working poor in receiving economies. This effect is stronger in a context of high macroeconomic volatility but is mitigated by the unpredictability of remittances: remittances are more effective to decreasing the share of working poor when they are easily predictable. Moreover, domestic finance and remittances appear as substitutes: remittances are less efficient in reducing the prevalence of working poor whenever finance is available.

Suggested Citation

  • Jean-Louis Combes & Christian Hubert Ebeke & Mathilde Maurel & Thierry Yogo, 2011. "Remittances and the Prevalence of Working Poor," Working Papers halshs-00585004, HAL.
  • Handle: RePEc:hal:wpaper:halshs-00585004 Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00585004
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    References listed on IDEAS

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    1. repec:dau:papers:123456789/12802 is not listed on IDEAS
    2. Jamal Bouyiour & Amal Miftah, 2015. "The impact of migrant workers' remittances on the living standards of families in Morocco: A propensity score matching approach," Migration Letters, Transnational Press London, UK, vol. 12(1), pages 13-27, January.
    3. Jean Louis Combes & Christian Ebeke & Mathilde Maurel, 2015. "The effect of remittances prior to an election," Applied Economics, Taylor & Francis Journals, vol. 47(38), pages 4074-4089, August.
    4. World Bank, 2012. "Bangladesh - Towards Accelerated, Inclusive and Sustainable Growth : Opportunities and Challenges, Volume 2. Main Report," World Bank Other Operational Studies 12121, The World Bank.

    More about this item

    Keywords

    Financial Development; shocks; Working poor; Remittances;

    JEL classification:

    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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