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Garbage In, Gospel Out? Controlling for the Underreporting of Remittances
Author:
Tigran A. Melkonyan null

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Mr. David A. Grigorian
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J. Scott Shonkwiler null

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Series:
IMF Working Papers
Volume/Issue:
Volume 2008: Issue 230
Language:
English
Publication Date:
01 Sep 2008
DOI:
https://doi.org/10.5089/9781451870886.001
ISBN:
9781451870886
ISSN:
1018-5941
Pages:
19
Keywords:
WP; dummy variable; model estimation; A. equation specification; model specification; measurement error; remittance equation; Remittances; Labor supply; Labor force participation; Migration; Income; Middle East
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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Empirical studies that use self-reported data on remittances to measure the latter's impact on microeconomic incentives mostly ignore the potential errors associated with reporting/measurement issues. An econometric procedure to control for these errors is developed and applied to household-level data from Armenia. We find evidence of systematic under-reporting of remittances. After controlling for this, we find a strong negative impact of remittances on incentives to work.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund