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Do remittances affect labor market outcomes in Sub-Saharan Africa

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  • Gaston Brice Nkoumou Ngoa

    (University of Fribourg, Department of Economics)

Abstract

In this paper, I estimate the effect of remittances on labor market outcomes in sub-Saharan Africa over the period 1975–2019. Using the dynamic system-GMM approach with remittances treated as endogenous, baseline estimates indicate that remittance flows have a significant effect on many labor market outcomes: they increase labor force participation and self-employment rates and significantly decrease unemployment. Robustness checks then show that remittances are associated with workers moving from underemployment to self-employment without increasing labor force participation or wage and salaried work. These findings suggest that to be successful in sub-Saharan Africa, reforms designed to foster productive employment across the labor force should factor in the benefits of remittances.

Suggested Citation

  • Gaston Brice Nkoumou Ngoa, 2022. "Do remittances affect labor market outcomes in Sub-Saharan Africa," Economics Bulletin, AccessEcon, vol. 42(2), pages 303-316.
    • Handle: RePEc:ebl:ecbull:eb-21-00674
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    More about this item

    Keywords

    Remittances; Labor market outcomes; Sub-Saharan Africa; GMM;
    All these keywords.

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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