Remittances and the Prevalence of Working Poor

Jean-Louis Combes, Christian Hubert Ebeke (cebeke@imf.org), Mathilde Maurel and Urbain Thierry Yogo
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Urbain Thierry Yogo: Université de Yaoundé II

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Abstract: This paper focuses on the relationships between remittances and the share of individuals working for less than 2$ US per day. It is based on an original panel dataset containing information related to remittances in about 80 developing countries and to the number of workers being paid less than 2 dollars per day as well. Even after factoring in the endogeneity of remittance inflows the results suggest that remittances lead to a decrease in the prevalence of working poor in receiving economies. This effect is stronger in a context of high macroeconomic volatility but is mitigated by the unpredictability of remittances: remittances are more effective to decreasing the share of working poor when they are easily predictable. Moreover, domestic finance and remittances appear as substitutes: remittances are less efficient in reducing the prevalence of working poor whenever finance is available.

Keywords: Remittances; Working poor; shocks; Financial Development (search for similar items in EconPapers)
Date: 2011-04-11
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00585004v1
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Citations: View citations in EconPapers (2)

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Related works:
Working Paper: Remittances and the Prevalence of Working Poor (2011)
Working Paper: Remittances and the prevalence of working poor (2011)
Working Paper: Remittances and the prevalence of working poor (2011)
Working Paper: Remittances and the Prevalence of Working Poor (2011)
Working Paper: Remittances and the prevalence of working poor (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:cdiwps:halshs-00585004

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