This study investigates how migration and remittances affect labor market participation in Senegal. Furthermore, it examines the effect of remittances on human capital development. The results reveal that migration and remittances reduce labor market participation of household members with migrants. More importantly, the paper finds that the labor market participation depends negatively on the level of remittances, which supports the reservation wage theory. Findings also show remittances increase expenditures on human capital development, as approximated by education and health spending. These findings hold true across specifications and econometric estimation procedures.
Download the full paper to learn more (attached).