Guatemala: Selected Issues Paper

June 8, 2018

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Format: Chicago

Guatemala: Selected Issues Paper, (USA: International Monetary Fund, 2018) accessed November 8, 2024

Summary

This Selected Issues paper analyzes remittances and households’ behavior in Guatemala. Remittances are a structural feature of the Guatemala economy. In 2017, remittance flows accounted for over 11 percent of GDP and benefitted over 1.5 million of Guatemalan households. The effects of remittances on the labor supply are estimated. There is no evidence of remittance-induced work disincentives. The results suggest that the labor supply for members of remittance-receiving households is relatively more elastic, most markedly so for the 41-65 age group: a one percent increase in weekly wages leads to a 0.5 percent increase in weekly hours worked for members of remittance-receiving households, versus 0.2 percent increase for non-remittance-receiving households.

Subject: Balance of payments, Corruption, Crime, Income inequality, Inflation, National accounts, Personal income, Prices, Remittances

Keywords: Central America, Corruption, CR, Exchange rate depreciation, Fixed capital capital formation, Food inflation, Global, Income inequality, Inflation, Inflation expectation, Investment residual, ISCR, Personal income, Reform proposal, Remittance, Remittances, Western Hemisphere

Publication Details

Pages:

88
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2018/155
Stock No:

1GTMEA2018002
ISBN:

9781484360125
ISSN:

1934-7685

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