Remittances from individuals not residing in the home significantly affect recipient households' behavior. Using data from the Jamaican Survey of Living Conditions and the Jamaican Labor Force Survey for years 2001-2007, this dissertation aims to explore some of the most significant effects of remittances, namely effects on labor market participation and household expenditures. Jamaica's proximity to the United States and Canada coupled with Jamaica's diaspora of educated individuals shapes an economy largely dependent on remittances. The country, therefore, provides an interesting and exciting case study for examining the effects of remittances. / In the first essay, we investigate whether remittances alter the labor market behavior of married women (or those in long-term relationships) in remittance-receiving households located in Jamaica. As is often the case in labor supply studies, it is important to identify key variables that are likely endogenous in the model. For purposes of this research, endogenous variables include remittances, the wife's education, and wages. We instrument both when predicting labor market participation and hours worked. Unlike other studies which find the income effect of remittances on household behavior results in increased leisure, we find that after instrumenting for remittances, the outside income has no significant effect on the supply of labor, either in terms of hours worked or participation. / The second paper assesses the extent that remittances alter the consumption pattern of recipient households in Jamaica. Classical theory predicts that total income and not income sources affects household consumption decisions, but developments in behavioral economics suggest the contrary. The disaggregation of both income streams and consumption expenditures as reported in the Jamaica Survey of Living Conditions provide us with unique insight into household behavior and in particular, spending on items such as food, schooling, and vices. Using Engel curve estimation and the two-part fractional response models, we find that the source of the income significantly affects the shares of income spent in specific consumption categories. Recipients, for example, generally spend larger shares of their income on schooling and home production and less at the grocery store. These findings suggest important implications should government look to tax or restrict the flow of remittances.
| Identifer | oai:union.ndltd.org:CHENGCHI/U0003497123 |
| Creators | Stephenson, Andrew Valroy. |
| Publisher | Georgia State University. |
| Source Sets | National Chengchi University Libraries |
| Detected Language | English |
| Type | text |
| Rights | Copyright © nccu library on behalf of the copyright holders |
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