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The Impact of Migration and Remittances on Labor Supply in Tajikistan

Author

Listed:
  • 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:

    1. Hajer Habib, 2023. "Remittances and Labor Supply: Evidence from Tunisia," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(2), pages 1870-1899, June.
    2. Md Nazirul Islam Sarker & Md Abdus Salam & R. B. Radin Firdaus, 2024. "Do female labor‐migrated households have lower productivity? Empirical evidence from rural rice farms in Bangladesh," Growth and Change, Wiley Blackwell, vol. 55(1), March.
    3. Jing Zhao & Yiwen Shangguan, 2025. "How does Urban-to-Urban Migration of Youth Affect the Health of Left-Behind Parents? Evidence from China," Journal of Family and Economic Issues, Springer, vol. 46(1), pages 35-53, March.
    4. Mahamuda Firoj & Abeda Sultana & Md. Harun Ur Rashid, 2024. "Does external dependency impact economic growth? Evidence from an emerging economy," SN Business & Economics, Springer, vol. 4(3), pages 1-23, March.
    5. Sarah Jacobs & Oladipo Olalekan David & Abigail Stiglingh-Van Wyk, 2023. "The Impact of Urbanization on Economic Growth in Gauteng Province, South Africa," International Journal of Economics and Financial Issues, Econjournals, vol. 13(2), pages 1-11, March.
    6. Arian Tahiri & Faruk Ahmeti & Burim Prenaj, 2023. "The Effect of International Migrant Remittances on Employment Patterns: Evidence from Kosovo," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 126-142.
    7. Tello, Michelle & Sánchez, Gonzalo E., 2025. "Paternal migration and schooling choices. A study on children left behind in Ecuador," International Journal of Educational Development, Elsevier, vol. 114(C).
    8. Lambrecht, Isabel B. & Mardonova Tolibkhonovna, Mohru & Pechtl, Sarah & Teirlinck, Charlotte, 2025. "Double burden or Newfound freedom? Women’s empowerment amid large-scale male labor migration from rural Tajikistan," IFPRI discussion papers 2347, International Food Policy Research Institute (IFPRI).
    9. Usman Alhassan & Jean‐Claude Maswana & Kazuo Inaba, 2024. "International remittances and labor supply in Nigeria: Do educational attainment and household income matter?," African Development Review, African Development Bank, vol. 36(3), pages 471-485, September.
    10. Shankar Ghimire & Kul Kapri, 2023. "Household Income, Migration Networks, and Migration Decisions," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 35(6), pages 1484-1507, December.
    11. Waqas Shair & Mumtaz Anwar & Saem Hussain & Neelam Kubra, 2024. "The Differential Effect of Internal and External Remittances on Labor Participation and Employment Choices in Pakistan," SAGE Open, , vol. 14(3), pages 21582440241, July.
    12. Laurent Bossavie & Daniel Garrote Sánchez & Mattia Makovec, 2024. "The Journey Ahead," World Bank Publications - Books, The World Bank Group, number 42224, April.
    13. Ghimire, Tinusha & Harou, Aurélie P. & Balasubramanya, Soumya, 2023. "Migration, gender labor division and food insecurity in Tajikistan," Food Policy, Elsevier, vol. 116(C).
    14. Sabeer, Vadakke Cholakkakath, 2025. "International migration and trade: A comparative analysis of China and India," Journal of Asian Economics, Elsevier, vol. 100(C).
    15. Xu, Mingjun & Chen, Changling & Xie, Jinhua, 2024. "Off-farm employment, farmland transfer and agricultural investment behavior: A study of joint decision-making among North China Plain farmers," Journal of Asian Economics, Elsevier, vol. 95(C).
    16. Charlotte Fabri & Michail Tsagris & Michele Moretti & Steven Van Passel, 2024. "Adaptation to climate change: The irrigation technology mix of Italian farmers," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 46(2), pages 781-802, June.

    More about this item

    Keywords

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    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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