IDEAS home Printed from https://ideas.repec.org/a/spr/eurase/v9y2019i3d10.1007_s40822-018-0106-4.html
   My bibliography  Save this article

Migration and labor supply in Georgia: an empirical study

Author

Listed:
  • George Berulava

    (I. Javakhishvili Tbilisi State University)

Abstract

This paper explores the impacts of migration on the labor supply decisions of left-behinds. Based on the data from the Georgian Household Survey and employing the instrumental variable Probit regression, this study establishes a causal link between migration and labor market outputs in Georgia. Another goal of the study is to ascertain whether or not the impact of migration on the labor market outcomes of left-behinds depends on the migrant’s relationship to a household head. The results of the study suggest that international migration is an important predictor of the labor participation choices and the employment status of left-behinds and that these effects are robust to the control of remittances. However, the impact of migration on the labor market participation/inactivity decisions of left-behind family members differs substantially by the household status of the migrant as well as the gender of left-behinds. For left-behind females, the effect of migration on their labor participation decisions is significant and has a negative sign. For males, having a migrant in a household increases the probability of their participation in the labor market only when the migrant is a child from a nuclear family.

Suggested Citation

  • George Berulava, 2019. "Migration and labor supply in Georgia: an empirical study," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 9(3), pages 395-419, September.
    • Handle: RePEc:spr:eurase:v:9:y:2019:i:3:d:10.1007_s40822-018-0106-4
    DOI: 10.1007/s40822-018-0106-4
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s40822-018-0106-4
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s40822-018-0106-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Bettin, Giulia & Lucchetti, Riccardo & Zazzaro, Alberto, 2012. "Endogeneity and sample selection in a model for remittances," Journal of Development Economics, Elsevier, vol. 99(2), pages 370-384.
    2. Ainura Uzagalieva & Antonio Menezes, 2009. "The poverty effect of remittance flows: evidence from Georgia," Post-Communist Economies, Taylor & Francis Journals, vol. 21(4), pages 453-474.
    3. Adams, Richard Jr. & Page, John, 2005. "Do international migration and remittances reduce poverty in developing countries?," World Development, Elsevier, vol. 33(10), pages 1645-1669, October.
    4. Michael Lokshin & Elena Glinskaya, 2009. "The Effect of Male Migration on Employment Patterns of Women in Nepal," The World Bank Economic Review, World Bank, vol. 23(3), pages 481-507, November.
    5. Chang, Hongqin & Dong, Xiao-yuan & MacPhail, Fiona, 2011. "Labor Migration and Time Use Patterns of the Left-behind Children and Elderly in Rural China," World Development, Elsevier, vol. 39(12), pages 2199-2210.
    6. Jim Airola, 2008. "Labor supply in response to remittance income: the case of Mexico," Journal of Developing Areas, Tennessee State University, College of Business, vol. 41(2), pages 69-78, January-M.
    7. Dean Yang, 2008. "International Migration, Remittances and Household Investment: Evidence from Philippine Migrants’ Exchange Rate Shocks," Economic Journal, Royal Economic Society, vol. 118(528), pages 591-630, April.
    8. Richard Blundell & Pierre-Andre Chiappori & Thierry Magnac & Costas Meghir, 2007. "Collective Labour Supply: Heterogeneity and Non-Participation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 74(2), pages 417-445.
    9. Binzel, Christine & Assaad, Ragui, 2011. "Egyptian men working abroad: Labour supply responses by the women left behind," Labour Economics, Elsevier, vol. 18(S1), pages 98-114.
    10. Cortes, Patricia, 2015. "The Feminization of International Migration and its Effects on the Children Left Behind: Evidence from the Philippines," World Development, Elsevier, vol. 65(C), pages 62-78.
    11. McKenzie, David & Sasin, Marcin J., 2007. "Migration, remittances, poverty, and human capital : conceptual and empirical challenges," Policy Research Working Paper Series 4272, The World Bank.
    12. Catalina Amuedo-Dorantes & Susan Pozo, 2006. "Migration, Remittances, and Male and Female Employment Patterns," American Economic Review, American Economic Association, vol. 96(2), pages 222-226, May.
    13. Mckenzie, David & Rapoport, Hillel, 2007. "Network effects and the dynamics of migration and inequality: Theory and evidence from Mexico," Journal of Development Economics, Elsevier, vol. 84(1), pages 1-24, September.
    14. Acosta, Pablo & Calderon, Cesar & Fajnzylber, Pablo & Lopez, Humberto, 2008. "What is the Impact of International Remittances on Poverty and Inequality in Latin America?," World Development, Elsevier, vol. 36(1), pages 89-114, January.
    15. Marco Stampini & Calogero Carletto & Benjamin Davis, 2008. "International Migration from Albania: The Role of Family Networks and Previous Experience," Eastern European Economics, Taylor & Francis Journals, vol. 46(2), pages 50-87, March.
    16. Alexander M. Danzer & Barbara Dietz, 2009. "Temporary Labour Migration and Welfare at the New European Fringe : A Comparison of Five Eastern European Countries," Working Papers 273, Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).
    17. Mendola, Mariapia & Carletto, Calogero, 2012. "Migration and gender differences in the home labour market: Evidence from Albania," Labour Economics, Elsevier, vol. 19(6), pages 870-880.
    18. Woodruff, Christopher & Zenteno, Rene, 2007. "Migration networks and microenterprises in Mexico," Journal of Development Economics, Elsevier, vol. 82(2), pages 509-528, March.
    19. Funkhouser, Edward, 1992. "Migration from Nicaragua: some recent evidence," World Development, Elsevier, vol. 20(8), pages 1209-1218, August.
    20. Tomáš Evan & Pavla Vozárová, 2018. "Influence of women’s workforce participation and pensions on total fertility rate: a theoretical and econometric study," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 8(1), pages 51-72, April.
    21. Catalina Amuedo-Dorantes, 2006. "Remittances and their microeconomic impacts: evidence from Latin America," Proceedings, Federal Reserve Bank of Dallas, pages 187-197.
    22. Chiappori, Pierre-Andre, 1988. "Rational Household Labor Supply," Econometrica, Econometric Society, vol. 56(1), pages 63-90, January.
    23. Theodore Gerber & Karine Torosyan, 2013. "Remittances in the Republic of Georgia: Correlates, Economic Impact, and Social Capital Formation," Demography, Springer;Population Association of America (PAA), vol. 50(4), pages 1279-1301, August.
    24. Berulava George & Chikava George, 2011. "The Determinants of Household Labor Supply: A Comparative Study," EERC Working Paper Series 11/13e, EERC Research Network, Russia and CIS.
    25. Atamanov, Aziz & Van den Berg, Marrit, 2012. "Heterogeneous Effects of International Migration and Remittances on Crop Income: Evidence from the Kyrgyz Republic," World Development, Elsevier, vol. 40(3), pages 620-630.
    26. Acosta, Pablo, 2006. "Labor supply, school attendance, and remittances from international migration : the case of El Salvador," Policy Research Working Paper Series 3903, The World Bank.
    27. Pierre-Andre Chiappori & Bernard Fortin & Guy Lacroix, 2002. "Marriage Market, Divorce Legislation, and Household Labor Supply," Journal of Political Economy, University of Chicago Press, vol. 110(1), pages 37-72, February.
    28. Kim, Namsuk, 2007. "The impact of remittances on labor supply : the case of Jamaica," Policy Research Working Paper Series 4120, The World Bank.
    29. Kamalbek Karymshakov & Burulcha Sulaimanova, 2017. "Migration impact on left-behind women’s labour participation and time-use: Evidence from Kyrgyzstan," WIDER Working Paper Series 119, World Institute for Development Economic Research (UNU-WIDER).
    30. Andrea Bassanini & Thomas Manfredi, 2014. "Capital’s grabbing hand? A cross-industry analysis of the decline of the labor share in OECD countries," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 4(1), pages 3-30, June.
    31. Xiaobing Wang & Nick Weaver, 2013. "Surplus Labour and Urbanization in China," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 3(1), pages 84-97, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Eleftherios Giovanis, 2022. "The effects of international migration on well-being of natives and immigrants: evidence from Germany, Switzerland and the UK," SN Business & Economics, Springer, vol. 2(6), pages 1-33, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Görlich, Dennis & Omar Mahmoud, Toman & Trebesch, Christoph, 2007. "Explaining labour market inactivity in migrant-sending families: Housework, hammock, or higher education?," Kiel Working Papers 1391, Kiel Institute for the World Economy (IfW Kiel).
    2. Kamalbek Karymshakov & Burulcha Sulaimanova, 2017. "Migration impact on left-behind women’s labour participation and time-use: Evidence from Kyrgyzstan," WIDER Working Paper Series 119, World Institute for Development Economic Research (UNU-WIDER).
    3. Finkelstein Shapiro, Alan & Mandelman, Federico S., 2016. "Remittances, entrepreneurship, and employment dynamics over the business cycle," Journal of International Economics, Elsevier, vol. 103(C), pages 184-199.
    4. Phadera, Lokendra, 2016. "International Migration and its Effect on Labor Supply of the Left-Behind Household Members: Evidence from Nepal," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235968, Agricultural and Applied Economics Association.
    5. Sylvie Démurger & Shi Li, 2013. "Migration, Remittances, and Rural Employment Patterns: Evidence from China," Research in Labor Economics, in: Labor Market Issues in China, pages 31-63, Emerald Group Publishing Limited.
    6. Patricia Justino & Olga Shemyakina, 2012. "Remittances and labor supply in post-conflict Tajikistan," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 1(1), pages 1-28, December.
    7. repec:hal:wpaper:halshs-00744438 is not listed on IDEAS
    8. John Gibson & David McKenzie & Steven Stillman, 2011. "The Impacts of International Migration on Remaining Household Members: Omnibus Results from a Migration Lottery Program," The Review of Economics and Statistics, MIT Press, vol. 93(4), pages 1297-1318, November.
    9. Bossavie, Laurent & Görlach, Joseph-Simon & Özden, Çağlar & Wang, He, 2024. "Capital Markets, Temporary Migration and Entrepreneurship: Evidence from Bangladesh," World Development, Elsevier, vol. 176(C).
    10. Laurent Bossavie & Çağlar Özden, 2023. "Impacts of Temporary Migration on Development in Origin Countries," The World Bank Research Observer, World Bank, vol. 38(2), pages 249-294.
    11. Göbel, Kristin, 2012. "Remittances and Gender-Speci fic Employment Patterns in Peru - a longitudinal Analysis," VfS Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 65409, Verein für Socialpolitik / German Economic Association.
    12. Anda DAVID & Audrey LENOEL, 2017. "International emigration and labour market outcomes of women staying behind: the case of Morocco," Working Paper f7f57256-7aaf-4dc5-9840-b, Agence française de développement.
    13. Francisca M. Antman, 2013. "The impact of migration on family left behind," Chapters, in: Amelie F. Constant & Klaus F. Zimmermann (ed.), International Handbook on the Economics of Migration, chapter 16, pages 293-308, Edward Elgar Publishing.
    14. Edward Asiedu & Nurokinan Chimbar, 2020. "Impact of remittances on male and female labor force participation patterns in Africa: Quasi‐experimental evidence from Ghana," Review of Development Economics, Wiley Blackwell, vol. 24(3), pages 1009-1026, August.
    15. Chami, Ralph. & Ernst, Ekkehard & Fullenkamp, Connel. & Oeking, Anne., 2018. "Are remittances good for labor markets in LICs, MICs and Fragile States?," ILO Working Papers 994987690202676, International Labour Organization.
    16. Nuñez, Roy & Osorio-Caballero, María Isabel, 2021. "Remittances, migration and poverty. A study for Mexico and Central America," MPRA Paper 106018, University Library of Munich, Germany.
    17. Grabrucker, Katharina, 2021. "Effects of internal rural-urban migration on rural non-farm enterprises: Evidence from Thailand and Vietnam," Passauer Diskussionspapiere, Volkswirtschaftliche Reihe V-85-21, University of Passau, Faculty of Business and Economics.
    18. Sèna Kimm Gnangnon, 2020. "Development aid, remittances inflows and wages in the manufacturing sector," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 22(2), pages 278-304, December.
    19. M. Imran Khan & Valatheeswaran C., 2016. "International Migration, Remittances and Labour Force Participation of Left-behind Family Members: A Study of Kerala," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 10(1), pages 86-118, February.
    20. Kalaj, Ermira Hoxha, 2010. "Remittances and Human Capital Investment: Evidence from Albania," MPRA Paper 49210, University Library of Munich, Germany.
    21. Nguyen, Cuong Viet & Nguyen, Hoa Quynh, 2015. "Do internal and international remittances matter to health, education and labor of children and adolescents? The case of Vietnam," Children and Youth Services Review, Elsevier, vol. 58(C), pages 28-34.

    More about this item

    Keywords

    Migration; Labor supply; Time allocation; Georgia;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • P20 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:eurase:v:9:y:2019:i:3:d:10.1007_s40822-018-0106-4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.