Guatemala: Selected Issues Paper

IMF Staff Country Reports, June 8, 2018

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Guatemala: Selected Issues Paper

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Bibliographic details

• Published: June 8, 2018
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9781484360125.002

Key findings on remittances and household behavior

• Remittances are described as a structural feature of the Guatemala economy.
• In 2017, remittance flows accounted for over 11 percent of GDP.
• Remittances benefitted over 1.5 million of Guatemalan households.
• The paper estimates effects of remittances on labor supply and finds no evidence of remittance-induced work disincentives.

Labor supply elasticity results

• Labor supply for members of remittance-receiving households is relatively more elastic compared with non-remittance-receiving households.
• Most pronounced effect observed for the 41-65 age group.
• Estimated elasticities:
  • A one percent increase in weekly wages leads to a 0.5 percent increase in weekly hours worked for members of remittance-receiving households.
  • A one percent increase in weekly wages leads to a 0.2 percent increase in weekly hours worked for members of non-remittance-receiving households.

Scope and themes covered

• Subject areas listed: Balance of payments, Corruption, Crime, Income inequality, Inflation, National accounts, Personal income, Prices, Remittances.
• Keywords include: 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.

Guatemala: Selected Issues Paper, IMF Staff Country Reports (June 8, 2018).

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