Back Matter
  • 1 https://isni.org/isni/0000000404811396, International Monetary Fund
  • | 2 https://isni.org/isni/0000000404811396, International Monetary Fund

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5 Appendix

5.1 Summary statistics

Table 9:

Summary statistics

article image

5.2 Regional country coverage

Table 10:

Regional country coverage

article image
1

The authors thank colleagues in the African Department, Middle East and Central Asia Department, Research Department, Strategy Policy and Review Department, and Western Hemisphere Department of the IMF, as well as at the International Labour Organization, for helpful comments and suggestions. Part of the research for this work was carried out while Ekkehard Ernst was visiting scholar at the IMF Institute for Capacity Development (ICD); he would like to thank ICD and colleagues there for the generous support received.

This paper was supported in part through a research project on macroeconomic policy in low-income and developing countries with the UK’s Department for International Development. The views expressed in this paper are those of the authors and should not be reported as representing the views of the IMF or DFID.

2

See, for example, Chami et al. (2008)

3

See Antman (2013) for a review of the literature that includes the effects of both remittances and emigration on various labor market outcomes.

4

Hanson (2007), for example, discusses some ways that emigration and remittances may have different effects on labor market outcomes.

5

For a discussion of the measurement of remittances, see Chami et al. (2008)

6

See ILO Trends Econometric Models for more details on the imputation methodology.

7

Formal tests should confirm, indeed, the presence of AR(1) autocorrelation in the error terms; detailed results available from the authors upon request.

8

See ILO (2015) for a discussion of labor demand, employment and under-employment in the context of weakly institutionalized and emerging countries.

9

For a discussion of changes in estimated Okun’s coefficients depending on the level of development, see Ball et al. (2013); Cazes et al. (2013).

10

Typical control variables to estimate aggregate labor supply equations would include the wage rate, the level of taxation and alternative income sources from social protection. In the country sample that we are using in this paper, none of this information is available for the large majority of countries (see Burniaux et al., 2003; Ernst and Rani, 2011 for typical labor supply estimations).

11

Instead of running regressions separately for male and female labor force participation rates, we also tried to analyse the participation gap (i.e. the percentage pont difference in male and female labor force participation rates). Given the heterogenous reaction of the two groups with respect to remittances, the corresponding coefficient was significant only in the simplest of specifications (results available from authors upon request).

12

An alternative specification in levels (i.e. estimating a wage curve rather than a wage Phillips curve) leads essentially to the same conclusions. Results available from authors upon request.

13

Given the nature of our data where only aggregate but not sectoral wage data is available, only indirect evidence for this type of transmission mechanism can be provided.

14

For more details on the methodology used by the Fund for peace, refer to http://fundforpeace.org/fsi/methodology/.

15

The score changes very little over the indicated time period and exhibits an auto-correlation of 85%.

Are Remittances Good for Labor Markets in LICs, MICs and Fragile States?
Author: Mr. Ralph Chami, Ekkehard Ernst, Connel Fullenkamp, and Anne Oeking