Garbage In, Gospel Out? Controlling for the Underreporting of Remittances

Empirical studies that use self-reported data on remittances to measure the latter's impact on microeconomic incentives mostly ignore the potential errors associated with reporting/measurement issues. An econometric procedure to control for these errors is developed and applied to household-level data from Armenia. We find evidence of systematic under-reporting of remittances. After controlling for this, we find a strong negative impact of remittances on incentives to work.
Publication date: September 2008
ISBN: 9781451870886
$18.00
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International - Economics , censored data , measurement error , remittances , migration , equation , remittance , survey

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