Remittances and Working Poverty |
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| Authors: | Jean-Louis Combes Christian Hubert Ebeke Mathilde Maurel Thierry Urbain Yogo |
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| Affiliation: | 1. Centre d’Etudes et de Recherches sur le Développement International (CERDI), Université d’Auvergne, Clermont-Ferrand, Francecebeke@imf.org;3. International Monetary Fund, Washington DC, USA;4. Centre d’Economie de la Sorbonne, Paris, France;5. Fondation pour les Etudes et Recherches sur le Developpement International, Clermont Ferrand, France;6. Centre d’Etudes et de Recherches sur le Développement International (CERDI), Université d’Auvergne, Clermont-Ferrand, France |
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| Abstract: | AbstractThis article shows that the level and the predictability of remittances reduce working poverty in receiving economies through their effects on labour market dynamics. It takes advantage of the new cross-country dataset (ILO, KILM 7th edition) containing information on the share of individuals working for less than US$2 per day. To identify the main impacts, the article proposes a novel approach to deal with the endogeneity of remittances and migration. In addition, the results are robust to the possible error in measuring working poverty, to the potential attrition bias, and to the presence of various control variables. |
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