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UNIVERSITY OF TRENTO
CIFREM
INTERDEPARTMENTAL CENTRE FOR RESEARCH TRAININGIN ECONOMICS AND MANAGEMENT
DOCTORAL SCHOOL IN ECONOMICS AND MANAGEMENT
Micro Impacts and Macro Determinants of Remittances: a Study of Albania
PhD Thesis Proposal
Ermira Hoxha Kalaj
January 2010
During the last two decades, South-East European countries and in particular Albania have experienced alarge increase in the number of people migrating to more developed countries. With a large portion of theirpopulation abroad, these countries are highly dependent on remittances, which in the case of Albania farexceed Foreign Direct Investments.
Using household survey data for Albania, the study will first model decision-making in remittance-receiving households and compare with non-remittance-receiving households. The focus of the first section
will be on human capital investment and the second section on labour market participation.In the third section the macro determinants will be estimated, in order to better understand thedynamics of remittances in Albania and neighbouring countries. A gravity-type equation will beused to assess to what extent remittance flows respond to key macroeconomic variables such asstock of migrants, dependency ratios, stock market returns, exports, and imports.
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INTRODUCTION
As labour markets become internationalized and people increasingly migrate to find work,
remittances have grown dramatically from $3 billion in 1975 to close to $370 billion in 2007
(World Bank, 2008). Remittance flows, funds received from migrants working abroad, are
enormously important as a source of income in many developing countries (Giuliano and Ruiz-
Arranz, 2005; Mundaca, 2005), and this dramatic growth has clearly had important implications for
poverty reduction (Adams and Page, 2003), economic growth (Solimano, 2003) and financial
development (Aggarwal, Demirguc-Kunt and Peria, 2006). Several studies have suggested that
remittances are the second largest source of external finance for developing countries after Foreign
Direct Investments (FDI), both in absolute terms and as a proportion of GDP. Relative to capital
flows, remittances tend to be stable and to increase during periods of economic downturns and
natural disasters (Yang, 2006). While a surge of inflows, including aid flows, can erode a countrys
competitiveness, remittances do not seem to have this adverse effect. One explanation of why
remittances may not lead to significant loss of competitiveness is that they tend to dry up if
exchange rates become overvalued (Rajan and Subramanian, 2005).
Since the fall of the Berlin Wall, migration from Eastern Europe, including the Balkans, has
increased sharply. According to World Bank estimates, in 2005 Albania was the fourth-ranked
country in the world in terms of share of emigrants in relation to population, with 27.5 percent of
Albanians living abroad, mostly in Greece and Italy. In 2006, remittances were 13 percent of
Albanias GDP, exceeding more than three times both the FDI and the total amount of development
aid received by the country. This extraordinary volume of migration and remittances is likely to
have had extensive consequences for the Albanian economy.
In their review of the existing literature, Rapoport and Docquier (2005) argue that
remittances have short-run economic benefits and may have long-run implications for households
labour supply decisions, education opportunities for offspring, and investments in household
businesses. My research project aims to enhance understanding of the effect of remittances in
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education and labour market participation and to examine the macro determinants of these flows to
Albania.
LITERATURE REVIEW
Remittances have been examined from both micro and macro prospectives. Microeconomic theory
treats remittances as a household issue. The empirical literature on the microeconomics examines
the patterns of remittances and the motivatons for making them but also the impact they have on the
labour market participation and on family consumption. The macroeconomic literature on the other
hand concentrates on how remittances respond to key macroeconomic variables such as stock of
migrants, dependecy ratios, stock market returns, exports, imports and on macro effects that
remittances have in recipient countries.
1. Remittances and education
The relationship between remittances and education has been explored in the literature by focusing
on the impact of remittances on the education of household members. Of particular concern for the
process of economic development is how migration affects household investments in human capital.
The empirical findings about the impact of remittances on educational attainment are
ambiguous. The extra income from remittances may allow children to delay entering the workforce
in order to further their studies. However, the departure of wage earners from a household may
disrupt family life. Migration may reduce the number of adult role models in the home and may
increase the demand on older children to assist in running and supporting the household. These
effects may make it more difficult for children to remain in school. Thus, migration may increase or
decrease household investment in childrens schooling (Hanson and Woodruff, 2003).
A few studies have looked for evidence on the potential forward linkage between
remittances and education. These studies represent an encouraging step toward documenting the
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potential growth effects of remittances through human capital formation.1 Hanson and Woodruff
(2003) employ a reduced-form approach to estimate the effect of remittances on childrens
schooling and health in Mexico. They find a positive relationship between child education and
having a family member abroad and argue that remittances are the mechanism that links the two.
They control for the potential endogeneity of having a migrant family member by using historical
state migration rates and household characteristics.
Cox-Edwards and Ureta (2003) reach similar conclusions about the impact of remittances in
El Salvador. Their estimates of survival functions show that remittances significantly contribute
to lowering the hazard of school leaving in El Salvador using cross-sectional data collected in 1997.
One problem with this study is that it does not address potential sample selectivity issues and
endogeneity of remittances. Thus, the findings could be tested using alternative econometric
techniques.
Using data for some countries of Latin America, Acosta et al. (2007) examines the effects of
remittances on age-based demographic sub-groups. The evidence in this study suggests that girls
and boys between 11 and 14 years of age seem to benefit from remittances in terms of higher
enrolment rates, but this positive impact does not apply to boys between 15 and 17 years of age.
Acosta et al. (2007) concludes that remittances are used as a substitute for child labour, a practice
usually associated with higher school dropout rates.
In his study of the Philippines, Yang (2005) finds that remittances cause only minor
improvements in school attendance for children between 10 and 16 years of age, but an increase of
remittances equivalent to 10 percent of household income leads to a 10 percent increase in the
attendance for boys between 17 and 21 years of age.
The conflicting findings on the impact of remittances on education suggest that this
relationship may vary by context and age and needs to be further investigated.
1 This is assuming that human capital formation is good for growth.
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2. Remittances and labor market participation
Remittances can increase consumption or stimulate investments in economies with liquidity
constraints (Reilly and Castaldo, 2007; Woodruff and Zenteno, 2001). One of the first studies that
examined the consequences of remittances on home countries2 is Funkhouser (1992), who finds that
in Nicaragua that remittances increase self-employment for men and reduce the labour supply of
women. However, from a development perspective, a decline in the labour supply in the recipient
families should not necessarily be viewed as a negative effect. For instance, women in remittance-
receiving households may carry out both parenting and home production activities (Acosta, 2006).
Since remittance inflows are simple income transfers, recipient households may rationally
substitute unearned remittance income for labor income. Regardless of their intended use,
remittance transfers may be subject to moral hazard problems (Chami et al., 2003). These problems
may induce recipients to divert resources to the consumption of leisure, thereby reducing their labor
market effort. There are cases in which members of remittance-receiving families reduce their labor
market participation in Pakistan (Kozelt and Alderman, 1990) and in Caribbean Basin cities
(Itzigsohn, 1995)
The impact of remittances on the decision to work has been examined by Rodriguez and
Tiongson (2001) in Manila. Without accounting for the endogeneity of remittances with respect to
labour supply, they conclude that remittances reduce employment. Using 2002 data from Mexico,
Amuendo-Dorantes and Pozo (2006) show that remittances appear to negatively affect female work
effort only in rural areas and in the informal sector. Additionally, their results indicate that
remittance-receiving men do not reduce their participation in labor market, but tend to shift into
informal employment. Their study acounts for the endogeneity of remittance income and examines
differences in the hours worked in various types of employment by men and women in urban and
rural areas.
2 Home countries are the countries of origin of the migrants.
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Using household survey data from Moldova, Grlich et al. (2007) examine labour market
inactivity by considering three potential explanations: a disincentive effect in which leisure is
considered a normal good and non-labour income raises the reservation wage of a potential worker;
a labour subtitution effect, in which people in remittance-reciving households allocate more time to
household production than their counterparts in the non-remittance-reciving households; an
education effect, in which migration provides incentives for additional education3 and remittances
are used to invest in the education of those remaining at home.
There are few empirical studies of the relationship between remittances and labour market
issues in Albania. Konica and Filer (2009), using Albanian Living Standards Measurement Survey
(LSMS) for 1996, suggest that remittances have a negative effect on female labour market
participation due to higher income from abroad. This finding is consistent with studies conducted in
other countries. In the Albanian case however, Konica and Filer (2009) find that neither the
existence of emigrants in the household nor the amount of remittances received has an effect on
labour force participation of Albanian males.
Using data from the 2005 Albanian LSMS Kilic et al. (2007) measure the impact of past
migration experience of Albanian households on non-farm business ownership through instrumental
variables regression techniques. These results indicate that households past migration experience
exerts a positive impact on the probability of owning a non-farm business. Using the same dataset,
Dermendzhieva (2009) investigates the effect of migration and remittances on labour supply in
Albania. A linear probability model is estimated for the probability of a household member to be
working on the subsamples of male and female household members separately. Only after using the
instrumental variable, Dermendzhieva (2009) obtains large and negative coefficients for receiving
remittances for females and older males.
To date the studies on Albania have focused mainly on the decision to work and have not
considered that remittances may change the hours worked or the type of work performed in the
3 A phenomenon stressed by the brain gain literature
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receiving economy, without altering employment rates. Hence, by focusing on work performance a
clearer picture of the allocation of labour supply across different types of employment can be
established.
3. Determinants of the remittances
Studies of why migrants remit to their family members left at home have examined either micro or
macro determinants.
From a theoretical viewpoint, three micro motives have been suggested to explain these
transfers (Rapoport and Docquier, 2005). The first motive involves altruism, meaning that migrants
care for those left behind. The second motivation entails an exchange where migrants remit for
services provided by the recipients4. A third motive involves familial interactions. This may take the
form of an insurance contract that protects its members against shocks, but remittances may also be
a loan repayment for the costs of migrants education and/or emigration (Rapoport and Docquier,
2005).
The New Economics of Labour Migration (Stark and Bloom, 1985) hypothesis states that
due to market failures in the home country, a household member migrates to another labour market,
entering a type of co-insurance agreement with the household members left behind. Remittances
are sent home when the household experiences shocks and enables the household to invest in new
enterprises.
Empirical studies must be innovative in measuring the different determinants of remittances
because it is difficult to separate other motives from altruism. Remittances, according to Rapoport
and Docquier (2005), combine five components; altruism, repayment of loan, insurance, inheritance
and exchange of services. This complex mixture of motives has been best described by Andreoni
(1989) as impure altruism and Lucas and Stark (1985) as enlightened selfishness.
4 Similar evidences ranging from pure altruism to self-interest are presented in the case of Botswana (Lucas and Stark,1985).
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Zanker and Siegel (2007) seek to empirically test the theoretical motives to remit in Albania
and Moldova using Tobit models. Although these countries are rather similar in terms of social and
political background, they are characterized by different patterns of remitting. Zanker and Siegel
(2007) find evidence for self-provided insurance, inheritance and altruism in the case of Albania.
For Moldova, they find significant results for the loan repayment motive with regard to the
repayment of migration loans.
The empirical macroeconomic literature usually focuses on the number of workers, wage
rates, and the economic situations in host and home countries, exchange rates and interest rates,
political risks and the infrastructure for transferring funds. The stock of migrant workers in a host
country is considered to be an obvious determinant of remittances: Freund and Spatafora (2005)
estimate that a doubling of the stock of migrants would lead to a 75 percent increase in recorded
remittances.
Economic policies and institutions in the home countries like exchange rate restrictions and
black market premiums may discourage remittances from being sent and also shift remittances from
the formal to the informal sector (El-Sakka and McNabb, 1999).
Using data collected over the period 2002-04 by the World Bank, Duval and Wolff (2009)
provide evidence on the patterns of remittances in Albania. The authors rely on random and fixed-
effects discrete-choice models to study both the determinants of remittances sent by household
members living abroad and their implications on the living standards of the recipients. According to
Duval and Wolff (2009), transfers are negatively correlated with both the senders and recipients
levels of education. Remittances have a positive impact on indicators like satisfaction with current
situation, adequateness of food consumption, and purchase of durable goods.
The analysis of the determinants of remittances can focus not only on variables associated
with the migrants home country but also on variables related to the migrants host countries and
variables that describe the relationships between the two. An appropriate approach for analysing
these variables is the gravity model which has been used by Lueth and Ruiz-Arranz (2006).
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4. Macro evidence about remittances
Most studies have found that remittances help families to survive poverty, undertake property
investment, access better education and healthcare, and finance small business activities. As
household consumption and investment agregate to the national level, remittances should have an
impact at the macro level .There are several studies that show the impact of remittances on poverty,
growth, education, financial development, and entrepreneurship.
Research on the impact of remittances on poverty using household data suggests that these
transfers help reduce the level of poverty, but have an even greater influence on its severity (Adams,
2004) and on the poverty gap (Taylor, Mora, Adams, 2005). The finding that remittances help
reduce poverty has been confirmed in cross-country studies. Based on a dataset of 74 low and
middle-income developing countries, Adams and Page (2003) find that remittances have a
statistically significant impact on reducing poverty.
Remittances have also been shown to promote enterpreneurship (Woodruff and Zenteno,
2001; Yang, 2005). The macroeconomic impact of a large-scale inward remittances is positive for a
small open economy, as in the case of Tajikistan (Kireyev, 2006). Remittances have a significant
impact on bank deposits and credit to GDP and promote financial development (Aggarwal,
Demirguc-Kunt and Peria, 2006).
Research on the effect of remittances on economic growth has been scant and has yielded
mixed results. Using a panel of 113 countries over three decades, Chami et al. (2003) find that
remittances are negatively associated with economic growth. On the other hand, Solimano (2003)
finds a positive association between remittances and growth for a panel of Andean countries.
Giuliano and Ruiz-Arranz, (2005) and Mundaca, (2005) suggest that the impact of remittances on
growth depends on the level of financial development.
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RESEARCH QUESTIONS
Most studies have focused on the impact of migration on the livelihood of migrants themselves,
while less research has been done on those household members who remain behind. The overall aim
of this project is to examine the impact of remittances on households decisions in terms of
education and labor market participation and to examine the macroeconomic determinants of
remittances. The focus will be on three sets of variables those associated with migrants home and
host countries, and those involving the relationship between the two.
The analysis will be conducted in three stages. In the first two, the dissertation will adopt a
microeconomic prospective. The money that migrants send back home is likely to become an
important factor in their households budget. This part of the dissertation will present evidence on
the economic effects of international remittances on the education and labour market participation
of household members.
Initially, the study will focus on the relationship between household migration behaviour
and educational attainment in Albania. The question is whether children who live in households
with external migrants complete more grades of school at a given age than do other children.
Sending migrants abroad may generate remittances that raise household income and allow children
to complete more schooling, but it may also disrupt family life in a manner that hinders childrens
progress at school. Remittances can not only increase physical investment, they can also expand
human capital accumulation, such as health and education.
The second part will examine the labour markets dynamics due to the presence of
remittances. According to the neoclassical model of labour-leisure choice (Killingsworth, 1983)
remittances, a source of non-labour income, may lift budget constraints, raise reservation wage and
through an income effect, reduce the likelihood of employment and the number of hours worked by
members of remittance-receiving households. Thus the second question will be on the effects of
remittances on the labour market participation of the head and other members of the household.
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In the third part, the macroeconomic determinants will be estimated in order to better
understand the dynamics of remittances in the South-East European countries. The dissertation will
use a gravity-type equation to try to asses to what extent workers remittances are responsive to key
macroeconomic variables such as stock of migrants, dependency ratio, stock market return, exports,
and imports.
My research focus will be on EU members such as Romania and Bulgaria and non-members
such as Croatia, Serbia and Montenegro, Bosnia and Herzegovina, Albania. These countries have
been among the top 10 remittance recipients in ECA5 countries during 2006-2007, according to the
World Bank (2008). Remittances represent over 20 percent of GDP in Moldova and Bosnia and
Herzegovina, and over 10 percent in Albania, and 5 percent for the remaining countries. Some of
these countries are considered to be in transition and their economies are in need of both
structurable changes and development. A series of factors may influence the decision to migrate
such as poverty rate, freedom to move, or EU membership. All these factors may affect either
remittance inflows or labor market structure in home countries.
5 European and Central Asia Countries
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RESEARCH DESIGN
In the first and second sections, this study will use case study analysis to investigate the
microeconomic impacts of remittances. The third section aims to estimate the macro determinants
of remittances and will make a comparison between Albania and other neighbouring countries.
1. Remittances and human capital investment
To examine the impact of remittances on educational attainment, my question is whether members
of remittance-receiving households complete more years of schooling than those living in non-
remittance-receiving households. A significant fraction of remittances are sent to low income
families. An interesting question is whether this increasing source of income has had an impact on
human capital accumulation decisions.
According to the literature, there is an ambiguous relationship between remittances and
schooling. In the case of Mexico (Hanson and Woodruff, 2003), there is a small positive effect of
remittances on schooling only for children living in cities with fewer than 2,500 inhabitants and
with mothers who have low levels of education. Cox and Ureta (2003) estimate a Cox proportional
hazard model to examine the effect of remittances on schooling. They find that remittances in El-
Salvador have a large and significant impact on school retention of individuals from 6 to 24 years
old. Other studies that find similar results are Funkhouser (1992) and Yang (2004). The marginal
effect of receiving remittances suggests that recipient households are more likely than non-recipient
households to keep children at school.
In order to characterize the remittance-receiving households, it is important to determine
their position in the income distribution. There are important costs associated to the act of
migrating, so it is possible that migrants do not come from the lowest quintiles of the income
distribution and therefore that remittances do not flow toward the poorest. It is possible that the
lowest income people are less likely to migrate and they receive fewer remittances. This situation is
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more likely to occur in rural areas where poverty rate is higher and in general educational
achievements are lower than in urban areas.
The investment in education model of Becker (1974) states that families take into
consideration their education rate of return and its cost, in order to choose the optimal education
level of their children, consequently in this model a range of factors may influence the educational
attainment. If families have financial constraints the level of schooling for their children will be
lower than optimal. By relaxing the households liquidity constraints, remittances from abroad may
facilitate investments in education.
The empirical framework that will be used to capture the effect of remittances in human
capital investment is the proportional hazard model, (Cox-Edwards and Ureta, 2003):
{ }'exp*)()( 0 ixthth =
where )(0 th is the baseline hazard of leaving school after grade t, which is left unspecified and is
estimated; 'ix is a vector of covariates such as; childs characteristics, local conditions, parental
schooling, household income and presence of remittances; and is the vector of parameters to be
estimated.
The crucial assumption in the proportional hazard model is that the effect of the covariates is
proportional over the entire base line. In the model household incomes are divided from remittances
in order to identify if income from remittances have the same effect as household income from
work in the decision to invest in more years of schooling for children. As mentioned in the literature
review section, Cox-Edwards and Ureta (2003) do not address potential sample selectivity issues
and endogeneity of remittances. Therefore, in my study I will concentrate in addressing these
issues.
Previous evidence on Mexico has suggested that the positive effects of remittances on
schooling are inversely correlated with the educational attainment of the childrens parents.
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Differential effects of this sort could be due to the fact that among poorer households with lower
levels of schooling (adult), remittances may have a more sizable effect in terms of relaxing budget
constraints. However, one can also expect an opposite effect with remittances having a smaller
impact on education when schooling of parents is low, if less educated parents exhibit lower
preferences for educational over other alternative expenditures.
Findings about the relationship between remittances and schooling have fundamental policy
implications. Demonstrating that remittances have an impact on schooling, we would provide
support for Government fund to be transferred to poor households in order to enhance educational
attainment. Another policy implication of a positive effect of remittances on education levels is a
support for reduction in the transaction costs of remittances.
2. Remittances and labour market participation
This part of my study will focus on the relationship between migration and labour market
participation of members remaining at home. Theoretically, there are two possibilities; the first
involves the loss of the earner in the household which may lead to increased work by others; the
second involves the reduction of the work of the remaining members due to the increase in the
household incomes from remittances. The size of these two effects is likely to differ by gender and
location.
Using data for Albania Konica and Filer (2009) find that neither the existence of migrants
nor the amount of remittances received have an effect on the labour market participation of males.
Their findings suggest that migrants higher earnings abroad contribute to the development of
household-owned businesses. Similar to Kilic et al. (2007), Dermendzhieva (2009) uses an
instrumental variable approach in order to deal with the potential endogeneity of migration and
remittance flows.
These focus mainly on the probability of working and do not consider that remittances may
change hours worked and type of work.
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The following model (Amuendo-Dorantes and Pozo, 2006) will be used to estimate the
effect of remittances on the hours worked in the home country:
iiiiZRY +++= 210
( )2,0 Normali
where the vector Ymeasures hours worked;R captures average remittance income;Zis a vector of
exogenous explanatory household and individual level variables.
Remittances may be endogenous and their coefficient estimate biased, so it is important to check for
endogeneity problems. The model will help to quantify the magnitude of the effect of remittances
on labour market participation and the direction of this impact.
3. Macro determinants of remittances
This section will employ a cross-country study to examine the macroeconomic determinants of
remittances. The empirical framework will be based on a gravity model, which is often used to
explain international trade flows. Gravity models have also been applied to explain FDI flows
(Demekas et al., 2005) and migration flows (Gupta and Mody, 2006).
The remittances from countryj to country i at time t will be modelled using the following
specification (Lueth and Ruiz-Arranz, 2006):
ijttijtijjtitijt
XDcapGDPcapGDPR ++++++='
43210
ln/ln/lnln
where
Rijt = total amount of remittances received by country I from country j at time t
GDPit/cap = GDP per capita of country i at time t
GDPjt/cap = GDP per capita of country j at time t
Dij = physical distance between two countries
Xijt = vector of potential factors influencing remittance flows
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t = time effects
The vector X of the potential factors will include stock of migrants, dependency ratio, stock market
returns, exports, imports, and others still to be decided.
Why a gravity model? Because it is a mathematical theory that can be used to predict the
amount of interaction between two countries, in relation to the distance between them. The project
will use it to analyse this interaction in terms of migration flows and remittances. Dependent
variables such as remittances and migrants will be explained by size factors such as GDP, gravity
factors such as distance and other economic and political variables, some of them qualitative. From
the empirical results of the last group of variables it will be possible to obtain evidence on the
motives to remit.
Data sources
For the questions regarding the micro impact of remittances the data will be extracted from the
Albanian Living Standard Measurement Survey (LSMS). This survey was carried out by the
Albanian National Institute of Statistics with the technical assistance of the World Bank. The LSMS
project is an international effort supported by the World Bank in order to improve the quality of
household survey data for policy needs. The survey contains a wide range of information on aspects
related to the living conditions in Albania at the individual, household and community level. For the
purpose of the survey, remittances are defined as money received by households in the past 12
months prior to the survey in the form of cash or in-kind from someone who does not live in the
household e.g. child or other relative in Albania or abroad. Remittances are valued in Lek and one
concern is the monetary measurement error due to currency exchange. The survey contains
information relative to labour force participation and also private transfers (not only remittances),
which can address issues in the second part of the dissertation.
The main data source on remittances for the macro chapter will be the IMF balance of
payments statistics, which report aggregate inward and outward flows. GDP data will be drawn
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from the international financial statistics dataset of the IMF, International Financial Statistics,
Direction of Trade Statistics and Annual Report on Exchange Arrangement and Exchange
Restrictions. Additional data such as dependency ratios will be taken from the World Development
Indicators, and the stock of migrants from International Migration Dataset.
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TENTATIVE CHAPTER OUTLINE
1. Introduction
1.1. Research Objectives
1.2. Organization of the Project
2. Remittances and human capital investment
2.1. Related literature
2.2. Conceptual framework
2.3. Remittance-education Model
2.3.1. Remittance-education Equation
2.3.2. Data2.3.3. Computation Techniques
2.4. Discussion of the Results
3. Remittances and labour market participation
3.1 Related literature
3.2. Conceptual framework
3.3. Labour market participation in presence of remittances Model
3.3.1. Remittance-Labour market participation Equation
3.3.2. Data
3.3.3. Computation Techniques
3.4 Discussion of the Results
4. Macro determinants of remittances
4.1. Related literature
4.2. Conceptual framework4.3. Remittance Model
4.3.1. Gravity-Type Equation
4.3.2. Data
4.3.3. Computation techniques
4.4. Discussion of the results
5. Overall Findings and Conclusions
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References:
Acosta, Pablo (2006): Labor Supply, School Attendance, And Remittances From InternationalMigration: The case of El Salvador, World Bank Policy Research Working Paper 3903,Washington DC: World Bank.
Acosta, Pablo, Pablo Fajnzylber and Lopez J. Humberto (2007): The Impact of Remittances onPoverty and Human Capital: Evidence from Latin American Household Surveys, World
Bank Policy Research Working Paper4247, Washington DC: World Bank.
Adams, Richard and John Page (2005): Do International Migration and Remittances ReducePoverty in Developing Countries?, World Development 32: 1407-1417.
Aggarwal, Reena and Andrew W. Horowitz (2002): Are International Remittances Altruism orInsurance? Evidence from Guyana, Using Multiple-Migrant Households, World
Development30 (11); 2033-44.
Aggarwal, Reena, Asli Demirguc-Kunt, and Maria Soledad Martinez Peria (2006): Do WorkersRemittances Promote Financial Development?, World Bank Policy Research Paper 3957,Washington DC: World Bank.
Amuedo-Dorantes, Catalina and Susan Pozo (2006): Migration, Remittances, and Male andFemale Employment Patterns, The American Economic Review 96: 222-226.
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