CAN INTERNATIONAL TRANSFERS BE PROBLEMATIC? HONDURAN REMITTANCES AND LABOR SUPPLY DECISIONS

Denise Stanley

Contemporary Economic Policy, 2015, vol. 33, issue 3, 550-570

Abstract: type="main" xml:id="coep12092-abs-0001"> Declining work force participation rates are a potentially important public policy issue for governments in countries with large capital inflows. Here we consider remittances as both a household and individual characteristic to estimate the impact of this nonwage transfer on labor supply decisions in Honduras. Although an initial view suggests moderate reductions across the working-age population, we find evidence of increased participation through a reallocation of labor time across work categories. Our inclusion of the individual nature of remittance reception suggests less emphasis on the unified household perspective is warranted . ( JEL O15, O12, J29)

Date: 2015
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