@inproceedings{Schuler2007Incentive,
abstract = {This study sheds light on the efficiency of informal mutual insurance systems. Evidence
on the behavioral effects of remittances and inter-family transfers is still rare.
This paper intends to analyse the incentive effects of inter-family transfers in Indonesia
with improved econometric techniques. First differences and three-stage least
squares are used to analyse incentive effects on working hours. The endogeneity of
transfers received and of the number of migrants sent away are explicitly taken into
account. Furthermore, different sectors of employment are distinguished in the analysis.
The empirical analysis indicates that inter-family transfers have an adverse
influence on work effort in the informal and non-agricultural sector of the economy.
Precisely, household members of working age reduce normal hours worked. No evidence
is found that child work is reduced. However, the negative incentive effect is
partly compensated by migrants, who are recipients rather than providers of transfers
in the short run.
Keywords: Remittances, Tran},
author = {Dana Sch\"{u}ler},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {330; Remittances; Transfers; Incentives; Three-Stage Least Squares},
language = {eng},
number = {29},
series = {Proceedings of the German Development Economics Conference, G\"{o}ttingen 2007},
title = {Incentive Effects of Transfers within the Extended Family: The Case of Indonesia},
url = {http://hdl.handle.net/10419/19889},
year = {2007}
}
