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

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.

Bibliographic Details

Main Author:	Kim, Namsuk
Language:	English
Published:	World Bank, Washington, DC 2007-02
Subjects:	ADULT MALE, AVERAGE EDUCATION LEVEL, BANK OF JAMAICA, BRAIN DRAIN, CHILD LABOR, CITIZENS, CLUSTER LEVEL, CLUSTERS, COLLECTIVE REMITTANCES, CURRENT LABOR FORCE, DEVELOPMENT IMPACT OF REMITTANCES, DISTRIBUTION OF REMITTANCES, EDUCATION, EFFECT OF REMITTANCES, EFFECTIVE POLICIES, EMIGRATION, EMPLOYMENT STATUS, FEMALE LABOR, FINDING JOBS, FOREIGN REMITTANCES, FORMAL EDUCATION, FUTURE REMITTANCE, FUTURE REMITTANCES, GENDER DIFFERENCES, GOVERNMENT PROGRAMS, GROWTH OF LABOR, GROWTH RATE, HEALTH, HIGH LEVELS OF REMITTANCES, HIGH UNEMPLOYMENT, HIGH UNEMPLOYMENT RATES, HIGH WAGE, HOUSEHOLD CHARACTERISTICS, HOUSEHOLD INCOME, HOUSEHOLD LEVEL, HOUSEHOLD SIZE, HOUSEHOLD WEALTH, HUMAN RESOURCES, IMMIGRANT, IMPACT OF REMITTANCES, INCIDENCE OF POVERTY, INCOME DISTRIBUTION, INCREASE IN REMITTANCES, INCREASING RETURNS, INFLATION, INTERNATIONAL MIGRATION, INTERNATIONAL MIGRATION REVIEW, INVESTMENT IN EDUCATION, JOB CREATION, JOB SEARCH, LABOR FORCE, LABOR FORCE PARTICIPATION, LABOR INFORMATION, LABOR MARKET, LABOR MARKET REGULATION, LABOR MARKETS, LABOR PRODUCTIVITY, LABOR PRODUCTIVITY GROWTH, LABOR SUPPLY, LEVEL OF EDUCATION, LIQUIDITY, LIVING CONDITIONS, MALE LABOR FORCE, MARKET ECONOMY, MIGRATION, MONTHLY REMITTANCE, NEW ENTRANTS, NUMBER OF HOUSEHOLDS, NUTRITION, PERSISTENT UNEMPLOYMENT, POLICY RESEARCH, POLICY RESEARCH WORKING PAPER, POOR PEOPLE, POVERTY REDUCTION, POVERTY REDUCTION STRATEGY, PREVIOUS WORK, PREVIOUS WORK EXPERIENCE, PRODUCTIVE USE OF REMITTANCES, PROGRESS, RATE OF POPULATION GROWTH, RATE OF RETURN, REAL WAGE, REAL WAGES, RECIPIENT HOUSEHOLDS, REMITTANCE, REMITTANCE DISTRIBUTION, REMITTANCE FLOWS, REMITTANCE RECIPIENTS, REMITTANCES, ROLE OF REMITTANCES, SCHOOL ATTENDANCE, SERVICE SECTOR, SERVICE SECTORS, SKILLED WORKERS, SMALL COUNTRIES, TEMPORARY MIGRATION, UNEMPLOYED, UNEMPLOYED PERSONS, UNEMPLOYMENT, UNEMPLOYMENT RATE, UNEMPLOYMENT RATES, USE OF REMITTANCES, VALUE OF REMITTANCES, VULNERABILITY, WORK EXPERIENCE, WORK FORCE, WORKER, WORKERS, YOUNG WORKERS,
Online Access:	http://documents.worldbank.org/curated/en/2007/02/7348352/impact-remittances-labor-supply-case-jamaica https://hdl.handle.net/10986/7152
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