Garbage In, Gospel Out? Controlling for the Underreporting of Remittances
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Summary:
Empirical studies that use self-reported data on remittances to measure the latter's impact on microeconomic incentives mostly ignore the potential errors associated with reporting/measurement issues. An econometric procedure to control for these errors is developed and applied to household-level data from Armenia. We find evidence of systematic under-reporting of remittances. After controlling for this, we find a strong negative impact of remittances on incentives to work.
Series:
Working Paper No. 2008/230
Subject:
Balance of payments Income Labor Labor force participation Labor supply Migration National accounts Population and demographics Remittances
English
Publication Date:
September 1, 2008
ISBN/ISSN:
9781451870886/1018-5941
Stock No:
WPIEA2008230
Pages:
19
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