Remittances Impact on Youth Labour Supply: Evidence from Kyrgyzstan

Karymshakov, Kamalbek; Abdieva, Raziiakhan; Sulaimanova, Burulcha; Sultakeev, Kadyrbrek

doi:10.2139/ssrn.3167324

Cited by 10 publications

(19 citation statements)

References 32 publications

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“…Karymshakov et al. () examined the impact of remittances from international migration on the occupational choices of youths left behind. The study found that the left‐behind youths were employed in the household agricultural land to replace the migrant workers in the family; there was no significant evidence of remittance‐dependent behaviour; and remittances did not impact wage employment.…”

Section: Literature Reviewmentioning

confidence: 99%

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The Effect of Remittances on Economic Growth in Kyrgyzstan and Macedonia: Accounting for Financial Development

Kumar

Stauvermann

Patel

et al. 2017

International Migration

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Kyrgyzstan and Macedonia have experienced a reasonable increase in remittances over the last twenty-five years. Subsequently, the extent to which remittances can be instrumental for economic development of the two countries has gained serious attention in recent development dialogues. The aim of this study is to examine the impact of remittances versus financial development on the economic growth of the two counties, complementing the burgeoning interest and focus on remittances for policy. The short-run and the long-run effects and the causality dynamics of remittances and financial development, are explored. The results show a long-run positive impact of remittances on the economic growth of these countries. The impact of financial development is negative, significant only for Kyrgyzstan and not statistically significant for Macedonia. The causality results show that remittances support economic growth for Kyrgyzstan, whereas economic growth appears to propel remittances for Macedonia.

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Section: Literature Reviewmentioning

confidence: 99%

“…Additionally, Karymshakov et al. () and Blagica et al. () highlighted the need for financial institutions like banks and pension funds in improving the impact of remittances in Kyrgyzstan and Macedonia.…”

Section: Introductionmentioning

confidence: 99%

The Effect of Remittances on Economic Growth in Kyrgyzstan and Macedonia: Accounting for Financial Development

Kumar

Stauvermann

Patel

et al. 2017

International Migration

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“…In Mexico, however, Amuedo‐Dorantes and Pozo () found that remittance income sometimes reduces hours worked, whereas at other times it increases work effort depending on the type of work, the gender of the recipient and the location of the household, while Karymshakov et al. () concluded that there is no strong evidence of remittance‐dependency behaviour of household members in the home country.The number of studies on the effect of remittances on the labour supply of recipients shows that the effects are country specific and should not be generalized. Furthermore, despite the importance of Nigeria as a recipient of remittances in Africa and the world at large, there is a lack of research analysing the impact of remittances on Nigeria's labour supply.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Contrary to the previous literature, Yang and Martinez (2006) showed that remittances have a positive impact on labour supply in the Philippines. In Mexico, however, Amuedo-Dorantes and Pozo (2005) found that remittance income sometimes reduces hours worked, whereas at other times it increases work effort depending on the type of work, the gender of the recipient and the location of the household, while Karymshakov et al (2016) concluded that there is no strong evidence of remittance-dependency behaviour of household members in the home country.…”

Section: Empirical Literaturementioning

confidence: 99%

International Migrant Remittances and Labour Supply in Nigeria

Urama

Nwosu

Yuni³

et al. 2016

International Migration

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The study analyses how remittances to Nigeria affect the labour supply of recipients using Propensity Score Matching (PSM) and a Log‐Linear regression model, with data from the 2013 Nigerian General Household Survey. The PSM results show that for the entire sample, the difference between the average amount of labour supplied per week by those that receive remittances and the amount they would have supplied without remittances is insignificant. The marginal impact analysis also shows that, ceteris paribus, the average labour supply for all recipients is inelastic to remittances. The results from the sub‐group analysis, however, show that receiving remittances negatively affects the labour supply of the self‐employed in agriculture, teenagers and the elderly. These results led us to the recommendation that policies to increase the inflow of remittances should be encouraged but in tandem with programmes to educate farmers on the benefit of investing remittances received in their farming business.

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“…It also has a significantly positive impact on male entrepreneurship. Similarly, in a study which set out to determine problems of endogeneity in the cross-"Life in Kyrgyzstan" sectional data, Karymshakov et al (2016) used the IV method in order to estimate the impact of remittance on youth labour supply in post-Soviet Kyrgyzstan.…”

Section: Literature Reviewmentioning

confidence: 99%

The Impact of Microfinance on Entrepreneurship in Kyrgyzstan

Sultakeev¹,

Karymshakov²,

Sulaimanova³

2018

AOP

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The concept of microfinance has developed rapidly since its inception in 1976. Despite its development, the impact it has on entrepreneurship is a subject of debate. Scholarly articles have recently emerged outlining that successful entrepreneurship depends on individual and household characteristics, and on the status of the microfinance loan received. This paper investigates the impact of microfinance on entrepreneurship in Kyrgyzstan using the nationally representative household survey data for 2013. Due to the endogeneity issue, we applied the binary response model with instrumental variables. After the adjustment for endogeneity, the result indicates that access to microcredit has a significant positive impact on entrepreneurship and shows there is a significant gender difference between men and women when making the decision to become an entrepreneur. Thus, men are more likely to become an entrepreneur than women. Another interesting finding is that elderly, less educated, and married individuals are more likely to be entrepreneurs. Therefore, it can be assumed that entrepreneurship in Kyrgyzstan is mostly represented by unskilled workers, many of which are unpaid family workers and self-employed who manage small trade markets, shops, and own land in order to generate income that does not require a particular education or labour skills.

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Remittances Impact on Youth Labour Supply: Evidence from Kyrgyzstan

Cited by 10 publications

References 32 publications

The Effect of Remittances on Economic Growth in Kyrgyzstan and Macedonia: Accounting for Financial Development

The Effect of Remittances on Economic Growth in Kyrgyzstan and Macedonia: Accounting for Financial Development

International Migrant Remittances and Labour Supply in Nigeria

The Impact of Microfinance on Entrepreneurship in Kyrgyzstan

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