Migrant Remittances, Labor Market and Household Strategies:

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Migrant Remittances, Labor Market and Household
Strategies

• A Comparative Analysis of Low-income Household
  Strategies in the Caribbean Basin
• By Jose Itzigsohn
• Presentation Chloé Lewis

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Article Focus

• Analyzes demographic and socio-economic
  characteristics of households that receive
  remittances in cities with low income households
  and high unemployment/underemployment
• within framework of the Latin American
  socio-economic crisis of the 1980s
• 2 stage survey data collected from surveys and
  personal interviews in 4 key cities in the
  Caribbean Basin

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3 Essential Topics

• Main characteristics of household
• Expansion of migration-remittance strategy due to
  1980s economic crisis
• Importance for household income
• Effect on labor force participation
• In context of deteriorating labor markets

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4 Major Cities

• Santo Domingo, DR
• Kingston, Jamaica
• Port au Prince, Haiti
• Guatemala City, Guatemala
• All cities have over 1/2 population have
  relatives abroad (most in Haiti/DR)
• Most have US migrant relatives

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Previous Studies on Remittances and Development

• Against Social Scientists
• Increase social inequality
• Unreliable source of foreign currency
• Inflationary effects that undermine balance of
  payments
• In Favor Economists
• Positive effect in home country
• Much needed source of foreign currency/levels
  balance of payments
• Improves income distribution and quality of life

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Migration Patterns

• Guatemala
• Pre 1980s non-labor exporting country
• Post 1980s 1. Civil war forces migration to
  Mexico/Belize. 2. Economic crisis motivates
  migration to US
• Jamaica
• Pre 1960s mostly to Britain
• Post 1960s barriers to entry in GB and
  recruitment to FLA sugar plantations
• Haiti
• Pre 1980 sugar cane batey in DR and middle class
  political refugees
• Post 1980 poor attempt to reach FLA by sea
• DR
• Pre 1980 urban lower-middle class
• Post 1980 urban poor professionals

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Results

• More likely to receive remittances
• Female headed households
• Old enough to join workforce
• Large number of children

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Results

• Relationship to socio-economic status varied
  across countries
• Jamiaca/Haiti
• income not significant, but education was
• DR/Guatemala
• Education not a factor, but income was a
  significant factor

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Results

• Those who receive remittances have a higher total
  income than those who do not
• There is a negative relationship between
  remittances and labor force participation
• Remittances allow fewer household members to be
  sent abroad and encourage the completion of
  studies

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Summary

• Remittances increase the incomes of individual
  households and help financially unstable groups
  to accumulate human capital