Remittances and labour market outcomes: Evidence from Mexico

Sharma, Amarendra; Cárdenas, Oscar

doi:10.1111/ilr.12035

Cited by 6 publications

(4 citation statements)

References 15 publications

(15 reference statements)

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“…For Mexico, most literature presents evidence that international remittances have helped promote productive investment (Woodruff and Zenteno, 2007), alleviate poverty (Acosta et al, 2007;Taylor et al, 2008;Sharma and Cardenas, 2018) and contribute to increasing households' welfare. Quinn (2005) and Amuedo-Dorantes and Pozzo (2006b) claim that remittances act as a self-insurance mechanism for the migrant and Chiodi et al (2012) conclude that remittances may help to alleviate credit constraints.…”

Section: Jel Classification -J620 D130 J120mentioning

confidence: 99%

Foreign vs domestic remittances and household welfare: evidence from Mexico

Aguayo-Téllez

Antonio

Martinez

2020

IJDI

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Purpose This paper aims to analyse the differential impact of foreign and domestic remittances on household expenditure shares. Design/methodology/approach This study uses micro-data from a very large and detailed income-expenditure survey in Mexico and runs consumption-share Engel equations to estimate income (expenditure) elasticities for different consumption goods groups. Trying to account for the standard problems of endogeneity, this paper considers only nuclear households with migrant fathers and compare households that receive remittances from abroad, from within Mexico and those not receiving remittances. Findings This study finds that international remittances have a larger impact on the expenditure shares of women’s clothes, insurances and durable goods, while domestic remittances have a larger impact on the share of income dedicated to food, health and education. Originality/value Based on the results, differences in consumption shares between families receiving foreign and domestic remittances might depend not only on the relative size of the income transfer but also on the nature of the transfer and the sender’s capacity to monitor in person the use of those remittances. The results indicate that households that receive remittances from abroad present higher shares of consumption of some goods the literature commonly associates with the mothers’ preferences.

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Section: Jel Classification -J620 D130 J120mentioning

confidence: 99%

Foreign vs domestic remittances and household welfare: evidence from Mexico

Aguayo-Téllez

Antonio

Martinez

2020

IJDI

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“…Estimated coefficients could bear a bias if the effects of ICT on child health are confounded with unobservable determinants. Identifying causal inference under this condition is not feasible without addressing the endogeneity problem (Sharma and Cárdenas, 2018). To estimate such a model, one way of advisable is to proceed by the 2SLS estimation technique (Nwakuya and Ijomah, 2017).…”

Section: Resultsmentioning

confidence: 99%

“…To estimate such a model, it is more advisable to consider instrumental variables. However, strong instruments are difficult to find at the aggregate level (Sharma and Cárdenas, 2018). It is also advisable to use the generalised method of moments.…”

Section: The Empirical Strategymentioning

confidence: 99%

Early child health in Africa: do ICT and democracy matter?

Nkoumou Ngoa,

Song

2023

HEPL

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This article examines the effect of information and communication technologies (ICT) and democracy on early child health using data from 51 African countries. We first specify and estimate a panel data model using ordinary least squares and two-stage least squares over the period 2001–2019. We apply the Hodrick–Prescott filter before analysis. Our results show that the extension of mobile phone use significantly contributes to the improvement of early child health in Africa. This effect is indifferent to the state or the level of democracy. Also, the internet diffusion plays a positive role in early child health when the democracy environment improves and becomes better. We suggest policies in favour of a large access to ICT tools and internet infrastructure as well as the promotion of democracy in Africa to better prevent infant mortality.

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“…First, unemployment may rise if recipients consider that remittances provide some form of social assistance, or they may reduce unemployment if such income spurs investment for the creation of new microenterprises. In line with that, Sharma and Cárdenas (2018) discuss whether remittances provide households with the funds necessary to start family businesses or prolong the duration of unemployment in Mexico.…”

Section: Literature Reviewmentioning

confidence: 89%

Remittances, Nonlabor Income as a Source of Hysteresis in Unemployment in Colombia, 2010–2020

Cardona-Arenas,

Sierra-Suarez

2023

Lat. Am. res. rev.

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This study seeks to determine the impact of remittances and nonlabor income on the duration of unemployment, and therefore on the hysteresis phenomenon in Colombia for the period between January 2010 and January 2021. The long-term unemployment rate in Colombia (LAPU) is calculated, and a vector autoregressive (VAR) model is subsequently estimated to evaluate the impact of remittances and nonlabor income on the LAPU. The results suggest that the increase in nonlabor income significantly affected LAPU in Colombia in the period analyzed. The growth of remittances instead turned out to positively and significantly impact LAPU only during the COVID-19 pandemic crisis. This suggests that remittances have become a fundamental income in times of crisis that allow for financing the search for work for a longer period of time, thus increasing the duration of unemployment and generating a hysteresis effect.

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Remittances and labour market outcomes: Evidence from Mexico

Cited by 6 publications

References 15 publications

Foreign vs domestic remittances and household welfare: evidence from Mexico

Foreign vs domestic remittances and household welfare: evidence from Mexico

Early child health in Africa: do ICT and democracy matter?

Remittances, Nonlabor Income as a Source of Hysteresis in Unemployment in Colombia, 2010–2020

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