Labor Earnings and Remittance Inflows: Do Remittances Affect Household Labor Income?
DOI:
https://doi.org/10.46661/rev.metodoscuant.econ.empresa.9040Keywords:
Remittances, labor income, labor market, quantile regressionAbstract
This study aims to determine the effect of remittances from abroad on the labor income of Ecuadorian households, using a distributional approach through quantile regressions. To reduce selection bias, data were matched on observable characteristics using Propensity Score Matching and Coarsened Exact Matching. The analysis draws on data from the National Survey of Employment, Unemployment, and Underemployment (ENEMDU) for the years 2015 and 2020. The results show a negative effect of remittances on labor income, particularly among households in the lower and middle deciles, indicating a heterogeneous effect across the income distribution. This suggests that remittances may discourage labor market participation in these segments. These findings have important implications for the design of public policies aimed at strengthening labor market integration and improving job quality among remittance-receiving households in contexts of high socioeconomic vulnerability
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