IZA DP No. 10196: Remittances and Informal Work
published in: International Journal of Manpower, 2016, 37 (7), 1172-1190
This paper studies the effects of remittances on informal employment in the migrants' countries of origin, looking both at the remittance-receiving and non-migrant households. Using data from the Social Exclusion Survey, conducted in six transition economies in 2009, I find that receiving remittances increases the likelihood of working informally. At the regional level, high prevalence of remittances is associated with a higher likelihood of informal work among non-migrant households. Migration and remittances may thus be contributing to informal employment in migration-sending countries.