Remittances and Labor Supply of Left-Behind Youth: Evidence from Kyrgyzstan
Dávalos, J., Karymshakov, K., Sulaimanova, B., & Abdieva, R. (2017). Remittances and labor supply of the left-behind youth: Evidence from Kyrgyzstan. Asian and Pacific Migration Journal, 26(3), 352-380.
Posted: 20 Nov 2017 Last revised: 7 May 2018
Date Written: December 16, 2016
Abstract
This paper examines whether remittances from international migration impact on the occupational choice of left-behind youth in Kyrgyzstan. Labor supply is analyzed both at the extensive and intensive margins using cross-sectional data for 2011. To overcome endogeneity concerns, an instrumental variable approach was implemented. Findings demonstrate that migration, rather than remittances, pushes the left-behind youth to become unpaid family workers. This is explained by the substitution effect as the youth left behind are called upon to replace the migrant labor. Moreover, this effect is heterogeneous – female youth are more inclined to becoming unpaid family workers both at the extensive and intensive margins.
Keywords: remittances, labor supply, youth, Kyrgyzstan
JEL Classification: J61
Suggested Citation: Suggested Citation