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Remittances and Labour Supply Revisited

New Evidence from the Macedonian Behavioural Tax and Benefit Microsimulation Model

Bibliographic Data

ID15538290
AuthorsMarjan Petreski (0000-0002-2675-8325, University American College Skopje, corresponding author)
Year2019
Volume16
Issue2
Pages219-234
Publication date2019-04-05
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueMIGRATION LETTERS (JOURNAL)
Journal identifiersISSN: 1741-8984 • E-ISSN: 1741-8992
PublisherDewspublication (PUBLISHER)
DOI10.33182//ml.v16i2.537
OpenAlexW2940176438
LanguageEN
References cited2

The objective of the paper is to revisit the role of remittances for labour-supply responses. Previous studies documented conflicting results, while the key methodological concern – remittances’ endogeneity about labour supply – has not been resolved convincingly. We construct behavioural tax and benefit microsimulation model and simulate labour-market responses of singles and couples had remittances not existed in their households. This is a novel methodological approach avoiding the usual trap of utilisation of inappropriate instruments to remittances. Our results suggest that remittances are prevalently associated with lower labour-market activity, especially for women. However, the labour-supply response is found quite feeble and only in single families. Hence, while previous findings are not entirely rebutted, they may have been overstated and are highly dependent on the construct of the receiving household

Construct (python library · Econometrics · Economics · Endogeneity · Labour economics · Labour supply · Macedonian · Microsimulation · Fiscal Policy and Economic Growth · Gender, Labor, and Family Dynamics · Migration and Labor Dynamics

  • Migration from Nicaragua

    Open Access•Edward Funkhouser•World Development•1992

  • Remittances as a Shield to Vulnerable Households in Macedonia

    Open Access•Marjan Petreski, Blagica Petreski et al.•International Migration•2016

Citation velocityhistorical
Highly citedNo

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