The Impact of Remittances on Labor Supply : The Case of Jamaica

Kim, Namsuk

The Impact of Remittances on Labor Supply : The Case of Jamaica

2007

Kim, Namsuk

A puzzle in the recently stagnated economy of Jamaica is that high rates of unemployment have persisted even when real wages have been increasing. This paper examines aspects of the labor supply in an effort to understand why high rates of unemployment have existed with increasing real wages. This is a sign of a badly functioning labor market. The cross-sectional analysis suggests that remittances have some impact on labor supply, especially on labor market participation. The pseudo panel data analysis also confirms that remittances have a strong impact on labor participation but not on weekly working hours. Households with remittance income have a higher reservation wage and have reduced the supply of labor by moving out of the labor force.

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AGROVOC Keywords

brain drain education emigration formal education growth rate health household income human resources income distribution inflation liquidity living conditions migration nutrition poverty reduction remittances unemployment vulnerability workers young workers

Bibliographic information

Publisher

World Bank, Washington, DC

Other Subjects

Household level; Remittance distribution; Household wealth; Child labor; Productive use of remittances; Growth of labor; Policy research; Job search; Increase in remittances; Current labor force; Future remittances; Persistent unemployment; Impact of remittances; Number of households; Male labor force; Use of remittances; Service sector; Household size; Small countries; Finding jobs; Effective policies; Foreign remittances; School attendance; Household characteristics; Gender differences; Rate of population growth; Labor productivity; Collective remittances; Clusters; Development impact of remittances; Distribution of remittances; Labor markets; Worker; High levels of remittances; Cluster level; Skilled workers; Employment status; Unemployed; Previous work experience; Rate of return; Real wage; Labor force participation; Increasing returns; Monthly remittance; High wage; Labor supply; Labor information; Service sectors; Remittance flows; Role of remittances; Real wages; High unemployment rates; Level of education; International migration review; Immigrant; Temporary migration; Unemployed persons; Labor force; Adult male; High unemployment; Recipient households; Female labor; Job creation; Remittance; Labor market; Labor market regulation; New entrants; Previous work; Progress; Unemployment rates; Remittance recipients; Market economy; Poor people; Work force; Work experience; Unemployment rate; International migration; Labor productivity growth; Citizens; Investment in education; Bank of jamaica; Policy research working paper; Value of remittances; Incidence of poverty; Effect of remittances; Government programs; Future remittance; Poverty reduction strategy; Average education level

License

Policy Research Working Paper; No. 4120http://creativecommons.org/licenses/by/3.0/World BankCC BY 3.0 Unported

Source

Policy Research Working Paper; No. 4120

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http://hdl.handle.net/10986/7152

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The Impact of Remittances on Labor Supply : The Case of Jamaica

2007

AGROVOC Keywords

Bibliographic information