Remittances and labour market outcomes: Evidence from Mexico

Amarendra Sharma and Oscar Cárdenas

International Labour Review, 2018, vol. 157, issue 2, 193-212

Abstract: The effects of remittances on labour market outcomes have been studied by many researchers, primarily using micro‐level data. While a few studies have also used macro‐level data, they suffer from endogeneity bias due to the inclusion of remittances in their estimations. The present study attempts to fill the gap in the literature by using a set of panel data of Mexican states and by addressing the endogeneity bias with a system GMM (generalized method of moments) estimator. The main conclusions are that remittances increase labour force participation rates and reduce median hours worked, critical employment and unemployment duration.

Date: 2018
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