IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp9541.html
   My bibliography  Save this paper

The Effect of Remittances on Labour Supply in the Republic of Haiti

Author

Listed:
  • Jadotte, Evans

    (World Bank)

  • Ramos, Xavier

    (Universitat Autònoma de Barcelona)

Abstract

We examine the labour supply effect of remittances in the Republic of Haiti, the prime international remittances recipient country in the Latin American and Caribbean (LAC) region relative to its GDP. Unlike previous empirical literature we address three econometric issues that may bias the estimates. We account for endogeneity of the remittances with respect to labour supply, for the zero-inflated nature of our dependent variable, hours of work, and for the self-selection of the migrant sample. Our results are in line with previous literature, and point to a decline of labour supply in the presence of remittances. However, contrary to previous findings, the labour market response to remittances of female household heads is not as sensitive as male's.

Suggested Citation

  • Jadotte, Evans & Ramos, Xavier, 2015. "The Effect of Remittances on Labour Supply in the Republic of Haiti," IZA Discussion Papers 9541, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp9541
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp9541.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Bussolo, Maurizio & Medvedev, Denis, 2008. "Do Remittances Have a Flip Side? A General Equilibrium Analysis of Remittances, Labor Supply Responses and Policy Options for Jamaica," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 23, pages 734-764.
    2. Mincer, Jacob, 1985. "Intercountry Comparisons of Labor Force Trends and of Related Developments: An Overview," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages 1-32, January.
    3. Gordon H. Hanson, 2007. "Emigration, remittances and labor force participation in Mexico," INTAL Working Papers 1456, Inter-American Development Bank, INTAL.
    4. Janvry, Alain de & Sadoulet, Elisabeth, 2001. "Income Strategies Among Rural Households in Mexico: The Role of Off-farm Activities," World Development, Elsevier, vol. 29(3), pages 467-480, March.
    5. Vuong, Quang H, 1989. "Likelihood Ratio Tests for Model Selection and Non-nested Hypotheses," Econometrica, Econometric Society, vol. 57(2), pages 307-333, March.
    6. Darren Lubotsky & Martin Wittenberg, 2006. "Interpretation of Regressions with Multiple Proxies," The Review of Economics and Statistics, MIT Press, vol. 88(3), pages 549-562, August.
    7. Deon Filmer & Lant Pritchett, 2001. "Estimating Wealth Effects Without Expenditure Data—Or Tears: An Application To Educational Enrollments In States Of India," Demography, Springer;Population Association of America (PAA), vol. 38(1), pages 115-132, February.
    8. Joshua D. Angrist & Jörn-Steffen Pischke, 2009. "Mostly Harmless Econometrics: An Empiricist's Companion," Economics Books, Princeton University Press, edition 1, number 8769.
    9. Douglas Staiger & James H. Stock, 1997. "Instrumental Variables Regression with Weak Instruments," Econometrica, Econometric Society, vol. 65(3), pages 557-586, May.
    10. Pedersen, Peder J. & Pytlikova, Mariola & Smith, Nina, 2004. "Selection or Network Effects? Migration Flows into 27 OECD Countries, 1990-2000," IZA Discussion Papers 1104, Institute of Labor Economics (IZA).
    11. Catalina Amuedo‐Dorantes & Susan Pozo, 2006. "Remittance Receipt and Business Ownership in the Dominican Republic," The World Economy, Wiley Blackwell, vol. 29(7), pages 939-956, July.
    12. Funkhouser, Edward, 1992. "Migration from Nicaragua: some recent evidence," World Development, Elsevier, vol. 20(8), pages 1209-1218, August.
    13. Evans Jadotte, 2006. "Income Distribution and Poverty in the Republic of Haiti," Working Papers PMMA 2006-13, PEP-PMMA.
    14. William H. Greene, 1994. "Accounting for Excess Zeros and Sample Selection in Poisson and Negative Binomial Regression Models," Working Papers 94-10, New York University, Leonard N. Stern School of Business, Department of Economics.
    15. Gordon H. Hanson, 2007. "Emigration, Remittances and Labor Force Participation in Mexico," IDB Publications (Working Papers) 9371, Inter-American Development Bank.
    16. Richard P.C. Brown & Gareth Leeves, 2007. "Impacts of International Migration and Remittances on Source Country Household Incomes in Small Island States; Fiji and Tonga," Working Papers 07-13, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    17. Lanjouw, Jean O. & Lanjouw, Peter, 2001. "The rural non-farm sector: issues and evidence from developing countries," Agricultural Economics, Blackwell, vol. 26(1), pages 1-23, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Asatryan, Zareh & Bittschi, Benjamin & Doerrenberg, Philipp, 2017. "Remittances and public finances: Evidence from oil-price shocks," Journal of Public Economics, Elsevier, vol. 155(C), pages 122-137.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Evans Jadotte, 2009. "International Migration, Remittances and Labour Supply: The Case of the Republic of Haiti," WIDER Working Paper Series RP2009-28, World Institute for Development Economic Research (UNU-WIDER).
    2. Fatma MABROUK & Jacob ODUOR & Abebe SHIMELES, 2015. "Remittances and Youth Labor Market Participation in Africa," Cahiers du GREThA (2007-2019) 2015-32, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    3. Finkelstein Shapiro, Alan & Mandelman, Federico S., 2016. "Remittances, entrepreneurship, and employment dynamics over the business cycle," Journal of International Economics, Elsevier, vol. 103(C), pages 184-199.
    4. Seidu, Ayuba & Onel, Gulcan & Moss, Charles Britt, 2018. "Impact of International Remittance on Out-Farm Labor Migration in Developing Countries: A Dynamic Panel Data Analysis," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266531, Southern Agricultural Economics Association.
    5. Vacaflores, Diego E., 2018. "Are remittances helping lower poverty and inequality levels in Latin America?," The Quarterly Review of Economics and Finance, Elsevier, vol. 68(C), pages 254-265.
    6. 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.
    7. Mustafa Özer & Jan Fidrmuc, 2017. "Male Education and Domestic Violence in Turkey: Evidence from a Natural Experiment," CESifo Working Paper Series 6526, CESifo.
    8. Sena Kimm Gnangnon, 2019. "Remittances Inflows and Trade Policy," Remittances Review, Transnational Press London, UK, vol. 4(2), pages 117-142, October.
    9. Juna Miluka & Gero Carletto & Benjamin Davis & Alberto Zezza, 2010. "The Vanishing Farms? The Impact of International Migration on Albanian Family Farming," Journal of Development Studies, Taylor & Francis Journals, vol. 46(1), pages 140-161.
    10. Amy Damon & Devon Kristiansen, 2014. "Childhood obesity in Mexico: the effect of international migration," Agricultural Economics, International Association of Agricultural Economists, vol. 45(6), pages 711-727, November.
    11. Cristian Vasco & Rodrigo Valdiviezo & Herman Hernández & Valdano Tafur & David Eche & Estefanía Jácome, 2020. "Off-Farm Employment, Forest Clearing and Natural Resource Use: Evidence from the Ecuadorian Amazon," Sustainability, MDPI, vol. 12(11), pages 1-16, June.
    12. Rahman, Andaleeb, 2018. "Does off-farm income affect food security? Evidence from India," 2018 Annual Meeting, August 5-7, Washington, D.C. 273882, Agricultural and Applied Economics Association.
    13. Shair, Waqas & Tariq Majeed, Muhammad & Ali, Amjad, 2021. "Labour Participation Decision and Preferences towards Different Employment Status in Response to Remittances: Evidence from the Provincial Capital of Punjab and Khyber Pakhtunkhawa (KPK), Pakistan," MPRA Paper 106330, University Library of Munich, Germany.
    14. Mamoudou Ba & Amar Anwar & Mazhar Mughal, 2021. "Non‐farm employment and poverty reduction in Mauritania," Journal of International Development, John Wiley & Sons, Ltd., vol. 33(3), pages 490-514, April.
    15. Grabrucker, Katharina, 2021. "Effects of internal rural-urban migration on rural non-farm enterprises: Evidence from Thailand and Vietnam," Passauer Diskussionspapiere, Volkswirtschaftliche Reihe V-85-21, University of Passau, Faculty of Business and Economics.
    16. Murard, Elie, 2019. "The Impact of Migration on Family Left Behind: Estimation in Presence of Intra-Household Selection of Migrants," IZA Discussion Papers 12094, Institute of Labor Economics (IZA).
    17. Murard, Elie, 2016. "Consumption and Leisure: The Welfare Impact of Migration on Family Left Behind," IZA Discussion Papers 10305, Institute of Labor Economics (IZA).
    18. Dedehouanou, Sènakpon Fidèle Ange & Araar, Abdelkrim & Ousseini, Aichatou & Harouna, Abdoulaziz Laouali & Jabir, Maimounata, 2018. "Spillovers from off-farm self-employment opportunities in rural Niger," World Development, Elsevier, vol. 105(C), pages 428-442.
    19. S Anukriti & Catalina Herrera‐Almanza & Praveen K. Pathak & Mahesh Karra, 2020. "Curse of the Mummy‐ji: The Influence of Mothers‐in‐Law on Women in India†," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(5), pages 1328-1351, October.
    20. Peter G. Backus & Nicky L. Grant, 2019. "How sensitive is the average taxpayer to changes in the tax-price of giving?," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 26(2), pages 317-356, April.

    More about this item

    Keywords

    international migration; remittances; labour supply; Republic of Haiti;
    All these keywords.

    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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp9541. 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: . General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.