The Impact of Remittances on Labor Supply: The Case of Jamaica

By Namsuk Kim. 2007

151 citations recorded by the source corpus.

A puzzle in the recently stagnated economy of Jamaica is that high rates of unemployment have persisted even when real wages have been increasing. This paper examines aspects of the labor supply in an effort to understand why high rates of unemployment have existed with increasing real wages. This is a sign of a badly functioning labor market. The cross-sectional analysis suggests that remittances have some impact on labor supply, especially on labor market participation. The pseudo panel data analysis also confirms that remittances have a strong impact on labor participation but not on weekly working hours. Households with remittance income have a higher reservation wage and have reduced the supply of labor by moving out of the labor force.

Subfields: General Health Professions, Sociology and Political Science

View Paper: https://www.semanticscholar.org/paper/8515a5b8da5bdef2c40631045ee285682bf2827e

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In General Health Professions

In Sociology and Political Science

Citations in the corpus

Evaluating the Economic Impact of International Remittances On Developing Countries Using Household Surveys: A Literature Review (2011, methodology): “Using ‘pseudo-panel’ data from a series of nationally-representative household surveys in Jamaica, Kim ( 2007 ) finds that labour force participation falls with international migration and the receipt of remittances.”
Remittances and Economic Growth: Larger Impacts in Smaller Countries? (2014, background): “Kim (2007) and Jadotte (2009) might shed light on this finding.”
Public Investment in Resource-Abundant Developing Countries (2012, background): “A number of researchers, however, find a negative effect of remittance income on labor supply in developing countries, suggesting some wealth effect still operates; see e.g., Kim (2007).”
The Impact of Migration on Family Left Behind (2012, background): “Kim (2007) shows that remittance income reduces labor market participation for nonmigrants in Jamaica.”
Battese-coelli estimator with endogenous regressors (2010, methodology): “Following Kim and Kim (2007)1 , we deal with the endogeneity problem for the BC estimator.”
The Effect of Male Migration on Employment Patterns of Women in Nepal (2009, background): “The magnitude of these effects is similar to that found by Kim (2007) for Jamaica.”