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Remittances and Household Expenditure Behaviour in Senegal

Teresa Randazzo () and Matloob Piracha ()
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Teresa Randazzo: University of Kent

No 8106, IZA Discussion Papers from Institute for the Study of Labor (IZA)

Abstract: This paper analyses the impact of remittances on household expenditure behaviour in Senegal. We use propensity score matching and OLS methods to assess the average impact of remittances on several household budget shares. Our results show a productive use of international remittances in Senegal. However, the impact of remittances disappears when the marginal spending behaviour is considered, i.e., households do not show a different consumption pattern with respect to their remittance status. Therefore, in the decision on how to allocate expenditure, remittances are treated just as any other source of income.

Keywords: remittances; household expenditure; Senegal (search for similar items in EconPapers)
JEL-codes: F24 O12 O15 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-afr, nep-dev and nep-mig
Date: 2014-04
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