International Migration, Remittances and Household Investment: Evidence from Philippine Migrants’ Exchange Rate Shocks
Year: 2008
Type: article
Study design: Observational Study
Abstract: How do households respond to overseas members’ economic shocks? Overseas Filipinos in dozens of countries experienced sudden, heterogeneous changes in exchange rates during the 1997 Asian financial crisis. Appreciation of a migrant's currency against the Philippine peso leads to increases in household remittances from overseas. The estimated elasticity of Philippine‐peso remittances with respect to the exchange rate is 0.60. Positive migrant shocks lead to enhanced human capital accumulation and entrepreneurship in origin households. Child schooling and educational expenditure rise, while child labour falls. Households also work more hours in self‐employment, and become more likely to start relatively capital‐intensive household enterprises.
Source: The Economic Journal
Author: Dean Yang
Institution: University of Michigan
Language: English
Topic: Migration and Labor Dynamics
Subfield: Sociology and Political Science
Field: Social Sciences
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2890037771