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International Migration, Remittances, and Household Investment: Evidence from Philippine Migrants' Exchange Rate Shocks
TLDR
In this paper, the authors examined Philippine households' responses to overseas members' economic shocks and found that these positive income shocks lead to enhanced human capital accumulation and entrepreneurship in migrants' origin households.Abstract:
Millions of households in developing countries receive financial support from family members working overseas How do migrant earnings affect origin-household investments? This paper examines Philippine households%u2019 responses to overseas members%u2019 economic shocks Overseas Filipinos work in dozens of foreign countries, which experienced sudden (and heterogeneous) changes in exchange rates due to the 1997 Asian financial crisis Appreciation of a migrant%u2019s currency against the Philippine peso leads to increases in household remittances received from overseas The estimated elasticity of Philippine-peso remittances with respect to the Philippine/foreign exchange rate is 060 These positive income shocks lead to enhanced human capital accumulation and entrepreneurship in migrants%u2019 origin households Child schooling and educational expenditure rise, while child labor falls In the area of entrepreneurship, households raise hours worked in self-employment, and become more likely to start relatively capital-intensive household enterprisesread more
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International Migration, Remittances and Household Investment: Evidence from Philippine Migrants’ Exchange Rate Shocks*
TL;DR: In this paper, the estimated elasticity of Philippine-peso remittances with respect to the exchange rate is 0.60, and the authors found that positive migrant shocks lead to enhanced human capital accumulation and entrepreneurship in origin households.
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References
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Journal ArticleDOI
Motivations to Remit: Evidence from Botswana
Robert E. Lucas,Oded Stark +1 more
TL;DR: In this paper, a theory of motivations to send remittances is described and tested with data from Botswana, where altruism is one of the motivations tested and found to be an insufficient explanation for remittance among migrants in Botswana.
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The Migration of Labor
TL;DR: A relative deprivation approach to migration is proposed in this paper, where the economic performance of migrants and their remittances is analyzed in the context of planning with migration in a context of economic instability.
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Empirical Strategies in Labor Economics
TL;DR: In this article, the authors provide an overview of the methodological and practical issues that arise when estimating causal relationships that are of interest to labor economists, including identification, data collection, and measurement problems.
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Credit Market Constraints, Consumption Smoothing and the Accumulation of Durable Production Assets in Low-Income Countries: Investments in Bullocks in India
TL;DR: In this paper, the authors formulate and estimate a finite-horizon, structural dynamic model of agricultural investment behavior that incorporates the major features of low-income agricultural environments: income uncertainty, constraints on borrowing and rental markets, and the use of investment assets to generate income and smooth consumption.
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