Home > Publications . Search All . Browse All . Country . Browse PSC Pubs . PSC Report Series

PSC In The News

RSS Feed icon

Mitchell finds children who lose fathers suffer at cellular level

Seefeldt says hard work alone won't allow poor to reach middle-class status in America

Shaefer says proposed plan to cover tax cuts would hurt a lot of struggling Americans

More News

Highlights

Neal Krause wins GSA's Robert Kleemeier Award

MiCDA Research Fellowship - applications due July 21, 2017

U-M awarded $58 million to develop ideas for preventing and treating health problems

Bailey, Eisenberg , and Fomby promoted at PSC

More Highlights

Dean Yang photo

Are remittances insurance? Evidence from rainfall shocks in the Philippines

Publication Abstract

Yang, Dean, and HwaJung Choi. 2007. "Are remittances insurance? Evidence from rainfall shocks in the Philippines." World Bank Economic Review, 21(2): 219-248.

Do remittances sent by overseas migrants serve as insurance for recipient households? In a study of how remittances from overseas respond to income shocks experienced by Philippine households, changes in income are found to lead to changes in remittances in the opposite direction, consistent with an insurance motivation. Roughly 60 percent of declines in household income are replaced by remittance inflows from overseas. Because household income and remittances are jointly determined, rainfall shocks are used as instrumental variables for income changes. The hypothesis cannot be rejected that consumption in households with migrant members is unchanged in response to income shocks, whereas consumption responds strongly to income shocks in households without migrants.

DOI:10.1093/wber/lhm003 (Full Text)

Browse | Search : All Pubs | Next