{
  "title": "The Joint Effect of Emigration and Remittances on Economic Growth and Labor Force Participation in Latin America and the Caribbean",
  "publication": "IMF Working Papers, August 9, 2024",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2024/08/09/the-joint-effect-of-emigration-and-remittances-on-economic-growth-and-labor-force-553159",
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  "summary": "We provide a consistent empirical framework to estimate the net joint effect of emigration and remittances on the migrants’ countries of origin key economic variables (GDP growth and labor force participation), while addressing the endogeneity concerns using novel “shift-share” instrumental variable",
  "sections": [
    {
      "heading": "Research question and methodology",
      "content": "- Objective: Estimate the net joint effect of emigration and remittances on migrants’ countries of origin key economic variables: GDP growth and labor force participation.\n- Sample period: 1999-2019.\n- Identification strategy: Uses novel “shift-share” instrumental variables in the spirit of Anelli and others (2023) to address endogeneity concerns.\n- Outcome variables: Contemporaneous economic growth (GDP growth) and change in labor force participation, including cohort analysis for ages 15-24."
    },
    {
      "heading": "Main findings",
      "content": "- Average effects across LAC:\n  - Emigration has a negative and statistically significant impact on contemporaneous economic growth.\n  - Emigration has a negative and statistically significant impact on change in labor force participation.\n  - Remittances partially mitigate the adverse impact of emigration—especially on economic growth—resulting in a small negative net joint effect.\n- Subregional heterogeneity:\n  - Significant differences across subregions for all estimates.\n  - The largest negative effects are observed in the Caribbean.\n- Cohort effects:\n  - The negative impact of emigration and remittances on the change in labor participation is small for the overall labor force.\n  - For the youngest cohort (15-24), the negative impact is twice as large as for overall labor force participation."
    },
    {
      "heading": "Robustness and sensitivity",
      "content": "- Results are robust to:\n  - Various specifications.\n  - Alternative variables.\n  - Different measurements of emigration and remittances.\n\n---\n\n Content in this bundle\n\n- Working Paper\n  - Working Paper (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Working Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2024/08/09/the-joint-effect-of-emigration-and-remittances-on-economic-growth-and-labor-force-553159"
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    "[Structured JSON version](/en/publications/wp/issues/2024/08/09/the-joint-effect-of-emigration-and-remittances-on-economic-growth-and-labor-force-553159/index.json)",
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    "Authors: Alina Carare, Alejandro Fiorito Baratas, Jessie Kilembe, Metodij Hadzi-Vaskov, Wenzhang Zhang",
    "Published: August 9, 2024",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9798400284410.001",
    "Objective: Estimate the net joint effect of emigration and remittances on migrants’ countries of origin key economic variables: GDP growth and labor force participation.",
    "Sample period: 1999-2019.",
    "Identification strategy: Uses novel “shift-share” instrumental variables in the spirit of Anelli and others (2023) to address endogeneity concerns.",
    "Outcome variables: Contemporaneous economic growth (GDP growth) and change in labor force participation, including cohort analysis for ages 15-24.",
    "Average effects across LAC:",
    "Subregional heterogeneity:",
    "Cohort effects:",
    "Results are robust to:",
    "**Working Paper**"
  ],
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