 A Note on the Labor Market Effects of Remittances in Latin American and Caribbean Countries: Do Thresholds Exist?The Developing Economies, 2014, vol. 52, issue 1, 52-67 Abstract: type="main"> The labor market effects of remittances have long been examined in the empirical literature. To date, the results have been mixed: some authors observe a negative association between remittances and unemployment while others report that remittances increase unemployment. This study empirically examines the impact of remittances on unemployment using macroeconomic data for a sample of 18 Latin American and Caribbean countries. Specifically, the study tests whether there is a nonlinear relationship between the variables. Results suggest that when the remittance-to-GDP ratio is low, remittances have a positive and significant impact on unemployment. However, as they increase, remittances are negatively associated with unemployment. This suggests the possibility that estimations based on the assumption of a linear relationship between remittances and labor may mask the true relationship between the variables. Date: 2014 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bla:deveco:v:52:y:2014:i:1:p:52-67 Ordering information: This journal article can be ordered from Access Statistics for this article The Developing Economies is currently edited by Katsuji Nakagane More articles in The Developing Economies from Institute of Developing Economies Contact information at EDIRC. |
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