Controlling for the underreporting of remittances

J Shonkwiler, David Grigorian and Tigran Melkonyan ()

Applied Economics, 2011, vol. 43, issue 30, 4817-4826

Abstract: Empirical studies that use self-reported data on remittances to measure the latter's impact on microeconomic incentives mostly ignore the potential errors associated with reporting/measurement issues. An econometric procedure to control for these errors is developed and applied to household level data from Armenia. We find evidence of systematic underreporting of remittances. After controlling for this, we find a strong negative impact of remittances on incentives to work.

Date: 2011
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DOI: 10.1080/00036846.2010.498359

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