The Impact of Migration and Remittances on Labor Supply in Tajikistan

Enerelt Murakami, Eiji Yamada and Erica Sioson

No 181, Working Papers from JICA Research Institute

Abstract: major labor migrant sending and remittance dependent country in Central Asia. We contribute to the literature in two ways. First, we effectively address the common methodological issues that result in biased estimates in analyses of migration and remittances. Our empirical work accounts for the endogeneity of migration and remittances with respect to the labor supply decisions of household members left at home, and for the self-selection of migrants and remittance senders through the application of a control function approach. Second, we apply our empirical model to unique high-frequency household panel data that further helps to remedy methodological problems present in cross-sectional studies. The findings suggest that having a migrant member and receiving remittances increases the reservation wages of the household members left at home, thereby reducing their labor supply and economic activity rate. This result is robust to different model specifications and definitions of migration and remittances.

Keywords: Migration; remittances; labor market participation; economic activity rate; endogenous switching; Tajikistan (search for similar items in EconPapers)
Date: 2018-12
New Economics Papers: this item is included in nep-cis, nep-cwa, nep-dev, nep-int, nep-mig and nep-tra
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Related works:
Journal Article: The impact of migration and remittances on labor supply in Tajikistan (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:jic:wpaper:181

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