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Gaston Brice Nkoumou Ngoa
''Do remittances affect labor market outcomes in Sub-Saharan Africa''
( 2022, Vol. 42 No.2 )
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.
Keywords: Remittances, Labor market outcomes, Sub-Saharan Africa, GMM
JEL: J2 - Demand and Supply of Labor: General
O1 - Economic Development: General
Manuscript Received : Jul 15 2021 Manuscript Accepted : Jun 30 2022

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