Can International Transfers Be Problematic? Honduran Remittances and Labor Supply Decisions

21 Pages Posted: 14 May 2015

See all articles by Denise L. Stanley

Denise L. Stanley

California State University, Fullerton - Department of Economics

Date Written: July 2015

Abstract

Declining work force participation rates are a potentially important public policy issue for governments in countries with large capital inflows. Here we consider remittances as both a household and individual characteristic to estimate the impact of this nonwage transfer on labor supply decisions in Honduras. Although an initial view suggests moderate reductions across the working-age population, we find evidence of increased participation through a reallocation of labor time across work categories. Our inclusion of the individual nature of remittance reception suggests less emphasis on the unified household perspective is warranted.

JEL Classification: O15, O12, J29

Suggested Citation

Stanley, Denise L., Can International Transfers Be Problematic? Honduran Remittances and Labor Supply Decisions (July 2015). Contemporary Economic Policy, Vol. 33, Issue 3, pp. 550-570, 2015, Available at SSRN: https://ssrn.com/abstract=2605222 or http://dx.doi.org/10.1111/coep.12092

Denise L. Stanley (Contact Author)

California State University, Fullerton - Department of Economics ( email )

Fullerton, CA 92834
United States

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