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The Effect of Emigration on Household Labor Supply: Evidence from Central Asia and South Caucasus

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Listed:
  • Paul, Saumik

    (Asian Development Bank Institute)

Abstract

Using a novel data set, this paper find that households with migrants experience a 26% drop in the labor force participation rate in four economies (Armenia, Azerbaijan, the Kyrgyz Republic, and Tajikistan) from the Central Asia and South Caucasus region. It is twice as large for households with permanent migrants as for households with seasonal migrants. The results do not alter in the presence of selection on unobservables, model misspecification, and selection bias due to the absence of more productive workers. Direct evidence on the remittances that each household received is not available. The empirical findings do, however, suggest the possibility of an increase in reservation wages.

Suggested Citation

  • Paul, Saumik, 2018. "The Effect of Emigration on Household Labor Supply: Evidence from Central Asia and South Caucasus," ADBI Working Papers 822, Asian Development Bank Institute.
  • Handle: RePEc:ris:adbiwp:0822
    as

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    References listed on IDEAS

    as
    1. Jason Gagnon, 2011. "“Stay With Us?” The Impact of Emigration on Wages in Honduras," OECD Development Centre Working Papers 300, OECD Publishing.
    2. Funkhouser, Edward, 1992. "Migration from Nicaragua: some recent evidence," World Development, Elsevier, vol. 20(8), pages 1209-1218, August.
    3. Joseph G. Altonji & Todd E. Elder & Christopher R. Taber, 2005. "Selection on Observed and Unobserved Variables: Assessing the Effectiveness of Catholic Schools," Journal of Political Economy, University of Chicago Press, vol. 113(1), pages 151-184, February.
    4. 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.
    5. J. Edward Taylor & George Dyer, 2009. "Migration and the Sending Economy: A Disaggregated Rural Economy-Wide Analysis," Journal of Development Studies, Taylor & Francis Journals, vol. 45(6), pages 966-989.
    6. Alberto Posso, 2012. "Remittances And Aggregate Labor Supply: Evidence From Sixty‐Six Developing Nations," The Developing Economies, Institute of Developing Economies, vol. 50(1), pages 25-39, March.
    7. Maarten Voors & Eleonora Nillesen & Philip Verwimp & Erwin Bulte & Robert Lensink & Daan van Soest, 2010. "Does Conflict affect Preferences? Results from Field Experiments in Burundi," Research Working Papers 21, MICROCON - A Micro Level Analysis of Violent Conflict.
    8. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, February.
    9. Hoddinott, John, 1994. "A Model of Migration and Remittances Applied to Western Kenya," Oxford Economic Papers, Oxford University Press, vol. 46(3), pages 459-476, July.
    10. Matshe, Innocent & Young, Trevor, 2004. "Off-farm labour allocation decisions in small-scale rural households in Zimbabwe," Agricultural Economics, Blackwell, vol. 30(3), pages 175-186, May.
    11. repec:bla:blaboo:1557860300 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    emigration; labor mobility;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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