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Internal remittances and employment choices in rural Ghana
African Journal of Economic and Management Studies Pub Date : 2020-04-30 , DOI: 10.1108/ajems-03-2019-0126
Stanley Kojo Dary , Yazidu Ustarz

The paper examines the effect of internal remittances on the employment choices of household heads in rural Ghana.,The paper employs data from the Ghana Living Standards Survey (GLSS 6) of the Ghana Statistical Service. Due to issues of endogeneity of remittances in relation to labor supply, the paper adopts an instrumental variable approach in the analysis. First, employment choices are categorized into three: (1) wage/salary employment, (2) self-employment and (3) domestic/family employment. The relationship is then modeled as instrumental variable multinomial probit (IV-MNP). Secondly, employment choices are recategorized into two: farm employment and otherwise and modeled as instrumental variable probit (IV-PROBIT). The models are estimated via the conditional mixed process (CMP) estimation technique.,The results indicate that remittances have a negative effect on self-employment and a positive effect on domestic/family employment. Thus, remittances reduce participation in self-employment but increase participation in domestic/family employment. Furthermore, remittances have a negative effect on participation in farm employment. The results are robust to different measures of remittances: receipt of remittances (dummy) and remittance income.,The results suggest that remittances are used for consumption rather than investing in earning activities. In general, engaging in earning type of employment, whether farm and nonfarm employment will decline with receipt of remittances in rural Ghana. There is a need for policy attention with the increasing migration of people out of rural areas.,Prior to this study, little was known on the effect of internal remittances on labor supply decisions of remittance recipients in Ghana, particularly rural Ghana. This paper contributes significantly to filling this knowledge gap.

中文翻译:

加纳农村地区的内部汇款和就业选择

本文研究了内部汇款对加纳农村地区户主的就业选择的影响。本文采用了加纳统计局加纳生活水平调查(GLSS 6)的数据。由于汇款与劳动力供应有关的内生性问题,本文在分析中采用了工具变量法。首先,就业选择可分为三类:(1)工资/薪金就业,(2)自营就业和(3)家庭/家庭就业。然后将该关系建模为工具变量多项式概率(IV-MNP)。其次,就业选择被重新分类为两个:农场就业和其他,并以工具可变概率(IV-PROBIT)为模型。通过条件混合过程(CMP)估算技术估算模型。结果表明,汇款对自营职业有负面影响,对家庭/家庭就业有正面影响。因此,汇款减少了对自营职业的参与,但增加了对家庭/家庭就业的参与。此外,汇款对参与农业就业有负面影响。结果对于不同的汇款方式(包括汇款(虚拟)的收款和汇款收入)具有鲁棒性。结果表明,汇款用于消费而不是用于赚钱活动。一般而言,从事加薪型就业,无论是农业还是非农就业都会随着加纳农村地区的汇款而下降。随着人们越来越多地从农村地区迁徙,政策需要引起关注。在此研究之前,关于内部汇款对加纳,特别是加纳农村地区的汇款接受者的劳动力供应决定的影响知之甚少。本文为填补这一知识空白做出了重要贡献。
更新日期:2020-04-30
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