The Effect of Emigration on Household Labor Supply: Evidence from Central Asia and South Caucasus
No 822, ADBI Working Papers from Asian Development Bank Institute
Using a novel data set, this paper find that households with migrants experience a 26% drop in the labor force participation rate in four economies (Armenia, Azerbaijan, the Kyrgyz Republic, and Tajikistan) from the Central Asia and South Caucasus region. It is twice as large for households with permanent migrants as for households with seasonal migrants. The results do not alter in the presence of selection on unobservables, model misspecification, and selection bias due to the absence of more productive workers. Direct evidence on the remittances that each household received is not available. The empirical findings do, however, suggest the possibility of an increase in reservation wages.
Keywords: emigration; labor mobility (search for similar items in EconPapers)
JEL-codes: F22 J61 (search for similar items in EconPapers)
Pages: 20 pages
New Economics Papers: this item is included in nep-cis, nep-cwa, nep-dev, nep-int, nep-knm, nep-mig and nep-tra
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Persistent link: https://EconPapers.repec.org/RePEc:ris:adbiwp:0822
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