Labor Supply, School Attendance, and Remittances from International Migration : The Case of El Salvador
The objective of this paper is to present microeconomic evidence on the economic effects of international remittances on households' spending decisions. Remittances can increase the household budget and reduce liquidity constraint problems, allowing more consumption and investment. In particula...
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| Format: | Policy Research Working Paper |
| Language: | English |
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Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2006/04/6795776/labor-supply-school-attendance-remittances-international-migration-case-el-salvador http://hdl.handle.net/10986/8179 |
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okr-10986-81792021-04-23T14:02:40Z Labor Supply, School Attendance, and Remittances from International Migration : The Case of El Salvador Acosta, Pablo ADULT MEN ASSETS BALANCE OF PAYMENT BALANCE OF PAYMENT STATISTICS BALANCE OF PAYMENTS BALANCE OF PAYMENTS STATISTICS CAPITA INCOME CAPITAL MARKETS CASH TRANSFERS CHILD HEALTH CHILD LABOR DEPENDENCE DIRECT IMPACT OF REMITTANCES DISCRIMINATION DURABLE GOODS ECONOMIC GROWTH ECONOMIC SITUATION ECONOMIES OF SCALE EFFECT OF REMITTANCES EMIGRATION EVOLUTION OF REMITTANCES EXCHANGE RATE FAMILY INCOME FAMILY WEALTH FEMALE HEADS FEMALE LABOR FUNCTIONAL FORMS FUTURE RESEARCH GDP GENDER GENDER DIFFERENCES GIRLS HOME COUNTRY HOME OWNERSHIP HOUSEHOLD BUDGET HOUSEHOLD INCOME HOUSING HUMAN CAPITAL IMPACT OF REMITTANCES IMPORTANCE OF REMITTANCES INCOME INEQUALITY INTERNAL MIGRATION INTERNATIONAL MIGRANT INTERNATIONAL MIGRANTS INTERNATIONAL MIGRATION INTERNATIONAL REMITTANCES LABOR FORCE LABOR FORCE PARTICIPATION LATIN AMERICAN LIQUIDITY LIQUIDITY CONSTRAINTS LIVING STANDARDS MACROECONOMIC BALANCE MIGRANT MIGRANT COMMUNITIES MIGRANT FAMILIES MIGRANT FAMILY MEMBERS MIGRANT REMITTANCE MIGRANTS MIGRATION DECISION MIGRATION PATTERNS MIGRATION PROCESS MOBILITY MONEY TRANSFER MONEY TRANSFERS PEACE PER CAPITA INCOME POWER OF WOMEN PURCHASING POWER RECIPIENT HOUSEHOLDS RECIPIENT OF REMITTANCES RECIPIENTS OF REMITTANCES REGRESSION ANALYSIS REMITTANCE REMITTANCE FLOWS REMITTANCE RECEIPTS REMITTANCE RECIPIENTS REMITTANCE SENDERS REMITTANCES REMITTANCES FLOWS ROLE OF REMITTANCES RURAL AREAS SOCIAL NETWORKS TRANSFER COSTS USE OF REMITTANCES USES OF REMITTANCES UTILITY MAXIMIZATION VILLAGES The objective of this paper is to present microeconomic evidence on the economic effects of international remittances on households' spending decisions. Remittances can increase the household budget and reduce liquidity constraint problems, allowing more consumption and investment. In particular, remittances can afford investing in children's human capital, a key outcome for the discussion of the perspective of growth in a high recipient developing country. Robust estimates that take into account both selection and endogeneity problems in estimating an average impact of remittances are substantially different from least squares (OLS) estimates presented in previous studies, indicating the importance of dealing with these methodological concerns. After controlling for household wealth and using selection correction techniques such as propensity score matching as well as village and household networks as instruments for remittances receipts, average estimates suggest that girls and young boys (less than 14 years old) from recipient households seem to be more likely to be enrolled at school than those from nonrecipient households. Remittances are also negatively related to child labor and adult female labor supply, while adult male labor force participation remains unaffected on average. The results signaling that the additional income derived from migration increases girls' education and reduces women's labor supply, with no major impact on activity choice for males 14 years or older, suggest the presence of gender differences in the use of remittances across (and possibly, within) households. 2012-06-15T18:54:22Z 2012-06-15T18:54:22Z 2006-04 http://documents.worldbank.org/curated/en/2006/04/6795776/labor-supply-school-attendance-remittances-international-migration-case-el-salvador http://hdl.handle.net/10986/8179 English Policy Research Working Paper; No. 3903 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Latin America & Caribbean El Salvador |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ADULT MEN ASSETS BALANCE OF PAYMENT BALANCE OF PAYMENT STATISTICS BALANCE OF PAYMENTS BALANCE OF PAYMENTS STATISTICS CAPITA INCOME CAPITAL MARKETS CASH TRANSFERS CHILD HEALTH CHILD LABOR DEPENDENCE DIRECT IMPACT OF REMITTANCES DISCRIMINATION DURABLE GOODS ECONOMIC GROWTH ECONOMIC SITUATION ECONOMIES OF SCALE EFFECT OF REMITTANCES EMIGRATION EVOLUTION OF REMITTANCES EXCHANGE RATE FAMILY INCOME FAMILY WEALTH FEMALE HEADS FEMALE LABOR FUNCTIONAL FORMS FUTURE RESEARCH GDP GENDER GENDER DIFFERENCES GIRLS HOME COUNTRY HOME OWNERSHIP HOUSEHOLD BUDGET HOUSEHOLD INCOME HOUSING HUMAN CAPITAL IMPACT OF REMITTANCES IMPORTANCE OF REMITTANCES INCOME INEQUALITY INTERNAL MIGRATION INTERNATIONAL MIGRANT INTERNATIONAL MIGRANTS INTERNATIONAL MIGRATION INTERNATIONAL REMITTANCES LABOR FORCE LABOR FORCE PARTICIPATION LATIN AMERICAN LIQUIDITY LIQUIDITY CONSTRAINTS LIVING STANDARDS MACROECONOMIC BALANCE MIGRANT MIGRANT COMMUNITIES MIGRANT FAMILIES MIGRANT FAMILY MEMBERS MIGRANT REMITTANCE MIGRANTS MIGRATION DECISION MIGRATION PATTERNS MIGRATION PROCESS MOBILITY MONEY TRANSFER MONEY TRANSFERS PEACE PER CAPITA INCOME POWER OF WOMEN PURCHASING POWER RECIPIENT HOUSEHOLDS RECIPIENT OF REMITTANCES RECIPIENTS OF REMITTANCES REGRESSION ANALYSIS REMITTANCE REMITTANCE FLOWS REMITTANCE RECEIPTS REMITTANCE RECIPIENTS REMITTANCE SENDERS REMITTANCES REMITTANCES FLOWS ROLE OF REMITTANCES RURAL AREAS SOCIAL NETWORKS TRANSFER COSTS USE OF REMITTANCES USES OF REMITTANCES UTILITY MAXIMIZATION VILLAGES |
| spellingShingle |
ADULT MEN ASSETS BALANCE OF PAYMENT BALANCE OF PAYMENT STATISTICS BALANCE OF PAYMENTS BALANCE OF PAYMENTS STATISTICS CAPITA INCOME CAPITAL MARKETS CASH TRANSFERS CHILD HEALTH CHILD LABOR DEPENDENCE DIRECT IMPACT OF REMITTANCES DISCRIMINATION DURABLE GOODS ECONOMIC GROWTH ECONOMIC SITUATION ECONOMIES OF SCALE EFFECT OF REMITTANCES EMIGRATION EVOLUTION OF REMITTANCES EXCHANGE RATE FAMILY INCOME FAMILY WEALTH FEMALE HEADS FEMALE LABOR FUNCTIONAL FORMS FUTURE RESEARCH GDP GENDER GENDER DIFFERENCES GIRLS HOME COUNTRY HOME OWNERSHIP HOUSEHOLD BUDGET HOUSEHOLD INCOME HOUSING HUMAN CAPITAL IMPACT OF REMITTANCES IMPORTANCE OF REMITTANCES INCOME INEQUALITY INTERNAL MIGRATION INTERNATIONAL MIGRANT INTERNATIONAL MIGRANTS INTERNATIONAL MIGRATION INTERNATIONAL REMITTANCES LABOR FORCE LABOR FORCE PARTICIPATION LATIN AMERICAN LIQUIDITY LIQUIDITY CONSTRAINTS LIVING STANDARDS MACROECONOMIC BALANCE MIGRANT MIGRANT COMMUNITIES MIGRANT FAMILIES MIGRANT FAMILY MEMBERS MIGRANT REMITTANCE MIGRANTS MIGRATION DECISION MIGRATION PATTERNS MIGRATION PROCESS MOBILITY MONEY TRANSFER MONEY TRANSFERS PEACE PER CAPITA INCOME POWER OF WOMEN PURCHASING POWER RECIPIENT HOUSEHOLDS RECIPIENT OF REMITTANCES RECIPIENTS OF REMITTANCES REGRESSION ANALYSIS REMITTANCE REMITTANCE FLOWS REMITTANCE RECEIPTS REMITTANCE RECIPIENTS REMITTANCE SENDERS REMITTANCES REMITTANCES FLOWS ROLE OF REMITTANCES RURAL AREAS SOCIAL NETWORKS TRANSFER COSTS USE OF REMITTANCES USES OF REMITTANCES UTILITY MAXIMIZATION VILLAGES Acosta, Pablo Labor Supply, School Attendance, and Remittances from International Migration : The Case of El Salvador |
| geographic_facet |
Latin America & Caribbean El Salvador |
| relation |
Policy Research Working Paper; No. 3903 |
| description |
The objective of this paper is to present microeconomic evidence on the economic effects of international remittances on households' spending decisions. Remittances can increase the household budget and reduce liquidity constraint problems, allowing more consumption and investment. In particular, remittances can afford investing in children's human capital, a key outcome for the discussion of the perspective of growth in a high recipient developing country. Robust estimates that take into account both selection and endogeneity problems in estimating an average impact of remittances are substantially different from least squares (OLS) estimates presented in previous studies, indicating the importance of dealing with these methodological concerns. After controlling for household wealth and using selection correction techniques such as propensity score matching as well as village and household networks as instruments for remittances receipts, average estimates suggest that girls and young boys (less than 14 years old) from recipient households seem to be more likely to be enrolled at school than those from nonrecipient households. Remittances are also negatively related to child labor and adult female labor supply, while adult male labor force participation remains unaffected on average. The results signaling that the additional income derived from migration increases girls' education and reduces women's labor supply, with no major impact on activity choice for males 14 years or older, suggest the presence of gender differences in the use of remittances across (and possibly, within) households. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Acosta, Pablo |
| author_facet |
Acosta, Pablo |
| author_sort |
Acosta, Pablo |
| title |
Labor Supply, School Attendance, and Remittances from International Migration : The Case of El Salvador |
| title_short |
Labor Supply, School Attendance, and Remittances from International Migration : The Case of El Salvador |
| title_full |
Labor Supply, School Attendance, and Remittances from International Migration : The Case of El Salvador |
| title_fullStr |
Labor Supply, School Attendance, and Remittances from International Migration : The Case of El Salvador |
| title_full_unstemmed |
Labor Supply, School Attendance, and Remittances from International Migration : The Case of El Salvador |
| title_sort |
labor supply, school attendance, and remittances from international migration : the case of el salvador |
| publisher |
Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2006/04/6795776/labor-supply-school-attendance-remittances-international-migration-case-el-salvador http://hdl.handle.net/10986/8179 |
| _version_ |
1764406023312900096 |