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The Effects Of Outside Income On Household Behavior: The Case Of Remittances In Jamaica, Andrew V. Stephenson

Economics Dissertations

Remittances significantly affect recipient households’ behavior. Using data from the Jamaican Survey of Living Conditions and the Jamaican Labor Force Survey ( 2001-2007), this dissertation explores the effects of remittances on labor market participation and household expenditures. Jamaica’s proximity to the United States and its diaspora of educated individuals shapes an economy largely dependent on remittances, thus providing an interesting case study.

First, we investigate whether remittances alter labor market behavior of married women in remittance-receiving households located in Jamaica. Remittances, the wife’s education, and wages are all treated as endogenous when estimating labor market participation and hours worked. Unlike …