Arbeitspapier
Split decisions: Family finance when a policy discontinuity allocates overseas work
Labor markets are increasingly global. Overseas work can enrich households but also split them geographically, with ambiguous net effects on decisions about work, investment, and education. These net effects, and their mechanisms, are poorly understood. We study a policy discontinuity in the Philippines that resulted in quasi-random assignment of temporary, partial-household migration to high-wage jobs in Korea. This allows unusually reliable measurement of the reduced-form effect of these overseas jobs on migrant households. A purpose-built survey allows nonexperimental tests of different theoretical mechanisms for the reduced-form effect. We also explore how reliably the reduced-form effect could be measured with standard observational estimators. We find large effects on spending, borrowing, and human capital investment, but no effects on saving or entrepreneurship. Remittances appear to overwhelm household splitting as a causal mechanism.
- Language
-
Englisch
- Bibliographic citation
-
Series: IZA Discussion Papers ; No. 7028
- Classification
-
Wirtschaft
Geographic Labor Mobility; Immigrant Workers
Economic Development: Human Resources; Human Development; Income Distribution; Migration
Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
- Subject
-
migration
households
remittances
policy discontinuity
Internationale Wanderung
Internationale Arbeitsmobilität
Familiensoziologie
Privater Haushalt
Rücküberweisung (Migranten)
Philippinen
Migranten
Südkorea
- Event
-
Geistige Schöpfung
- (who)
-
Clemens, Michael A.
Tiongson, Erwin R.
- Event
-
Veröffentlichung
- (who)
-
Institute for the Study of Labor (IZA)
- (where)
-
Bonn
- (when)
-
2012
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Clemens, Michael A.
- Tiongson, Erwin R.
- Institute for the Study of Labor (IZA)
Time of origin
- 2012
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The relevance of equal splits: On a behavioral discontinuity in ultimatum games
Collective strategy condensation: when envy splits societies
When can we trust population thresholds in regression discontinuity designs?
When can we trust population thresholds in regression discontinuity designs?
When does regression discontinuity design work? Evidence from random election outcomes
When Do Proxy Advisors Improve Corporate Decisions?
Overseas Club.
Overseas Club.
Overseas Club.
When does the sheep become a wolf? : minimal conditions for interindividual-intergroup discontinuity