Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/230234
Authors: 
Asiedu, Edward
Chimbar, Nurokinan
Year of Publication: 
2020
Citation: 
[Journal:] Review of Development Economics [ISSN:] 1467-9361 [Volume:] 24 [Issue:] 3 [Pages:] 1009-1026
Abstract: 
In this paper, we examine how remittances, an outcome of labor mobility, affect labor market activities in Ghana using detailed household and individual‐level data. This is important, considering the extensive literature that has documented the remittance–poverty reduction nexus. First, we find a strong negative association between household remittance‐receiving status and individual labor supply decisions using instrumental variable estimation techniques. Second, we find the depressing effect of remittances on labor supply decisions to be much stronger in rural areas. Rural women who reside in remittance‐receiving households are less likely to be in the labor force compared with those who do not reside in such households. Remittances have very little impact on labor supply decisions in urban areas. Our findings support that remittances can exacerbate long‐term poverty reduction in rural areas through lower labor force participation, and as such rural‐based and gender‐based interventions may be needed to help redirect remittance income.
Subjects: 
labor markets
quasi‐experiment
remittances
reservation wage
rural women
rural men
Ghana
sub‐Saharan Africa
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by/4.0/
Document Type: 
Article
Document Version: 
Published Version

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