Garbage In, Gospel Out? Controlling for the Underreporting of Remittances

Tigran Melkonyan (), David Grigorian and J Shonkwiler

No 2008/230, IMF Working Papers from International Monetary Fund

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 under-reporting of remittances. After controlling for this, we find a strong negative impact of remittances on incentives to work.

Keywords: WP; dummy variable; model estimation; A. equation specification; model specification; measurement error; remittance equation; Remittances; Labor supply; Labor force participation; Migration; Income; Middle East (search for similar items in EconPapers)
Pages: 19
Date: 2008-09-01
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Citations: View citations in EconPapers (3)

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