Have Remittances Affected Real Unit Labor Costs in the Transition Economies of Eastern Europe, the South Caucasus, and Central Asia?

Have Remittances Affected Real Unit Labor Costs in the Transition Economies of Eastern Europe, the South Caucasus, and Central Asia?

Twelve of the 29 transition economies in Europe and Central Asia are high remittance recipients, with average remittance receipts equivalent to 5 percent or more of their gross domestic product in the 2010s. The paper examines the evolution, during...

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Bibliographic Details
Main Authors: Okello, Jimmy Apaa, Brownbridge, Martin, Canagarajah, Sudharshan
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2021
Subjects:
REMITTANCES
LABOR COSTS
LABOR MARKET
TRANSITION ECONOMIES
Online Access:http://documents.worldbank.org/curated/en/305811611083394794/Have-Remittances-Affected-Real-Unit-Labor-Costs-in-the-Transition-Economies-of-Eastern-Europe-the-South-Caucasus-and-Central-Asia
http://hdl.handle.net/10986/35027
id okr-10986-35027
recordtype oai_dc
spelling okr-10986-350272022-09-20T00:10:58Z Have Remittances Affected Real Unit Labor Costs in the Transition Economies of Eastern Europe, the South Caucasus, and Central Asia? Okello, Jimmy Apaa Brownbridge, Martin Canagarajah, Sudharshan REMITTANCES LABOR COSTS LABOR MARKET TRANSITION ECONOMIES Twelve of the 29 transition economies in Europe and Central Asia are high remittance recipients, with average remittance receipts equivalent to 5 percent or more of their gross domestic product in the 2010s. The paper examines the evolution, during the 2000s and 2010s, of real unit labor costs, denominated in local currency and U.S. dollars, of the transition economies. Local currency and U.S. dollar real unit labor costs rose much faster between 2003 and 2015-17 in the high remittance recipient economies than in the other transition economies, although there was considerable variance between the countries in the high remittance recipient group. Among the high remittance recipients, approximately half of the increase in real unit labor costs denominated in U.S. dollars can be attributed to increases in local currency real unit labor costs and half to appreciation of their real exchange rates. Fixed effects and cross-country econometric estimates suggest that remittances had a positive and significant impact on the changes in domestic currency real unit labor costs in the transition economies. 2021-01-21T15:43:14Z 2021-01-21T15:43:14Z 2021-01 Working Paper http://documents.worldbank.org/curated/en/305811611083394794/Have-Remittances-Affected-Real-Unit-Labor-Costs-in-the-Transition-Economies-of-Eastern-Europe-the-South-Caucasus-and-Central-Asia http://hdl.handle.net/10986/35027 English Policy Research Working Paper;No. 9513 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Europe and Central Asia Central Asia Eastern Europe Europe and Central Asia
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic REMITTANCES
LABOR COSTS
LABOR MARKET
TRANSITION ECONOMIES
spellingShingle REMITTANCES
LABOR COSTS
LABOR MARKET
TRANSITION ECONOMIES
Okello, Jimmy Apaa
Brownbridge, Martin
Canagarajah, Sudharshan
Have Remittances Affected Real Unit Labor Costs in the Transition Economies of Eastern Europe, the South Caucasus, and Central Asia?
geographic_facet Europe and Central Asia
Central Asia
Eastern Europe
Europe and Central Asia
relation Policy Research Working Paper;No. 9513
description Twelve of the 29 transition economies in Europe and Central Asia are high remittance recipients, with average remittance receipts equivalent to 5 percent or more of their gross domestic product in the 2010s. The paper examines the evolution, during the 2000s and 2010s, of real unit labor costs, denominated in local currency and U.S. dollars, of the transition economies. Local currency and U.S. dollar real unit labor costs rose much faster between 2003 and 2015-17 in the high remittance recipient economies than in the other transition economies, although there was considerable variance between the countries in the high remittance recipient group. Among the high remittance recipients, approximately half of the increase in real unit labor costs denominated in U.S. dollars can be attributed to increases in local currency real unit labor costs and half to appreciation of their real exchange rates. Fixed effects and cross-country econometric estimates suggest that remittances had a positive and significant impact on the changes in domestic currency real unit labor costs in the transition economies.
format Working Paper
author Okello, Jimmy Apaa
Brownbridge, Martin
Canagarajah, Sudharshan
author_facet Okello, Jimmy Apaa
Brownbridge, Martin
Canagarajah, Sudharshan
author_sort Okello, Jimmy Apaa
title Have Remittances Affected Real Unit Labor Costs in the Transition Economies of Eastern Europe, the South Caucasus, and Central Asia?
title_short Have Remittances Affected Real Unit Labor Costs in the Transition Economies of Eastern Europe, the South Caucasus, and Central Asia?
title_full Have Remittances Affected Real Unit Labor Costs in the Transition Economies of Eastern Europe, the South Caucasus, and Central Asia?
title_fullStr Have Remittances Affected Real Unit Labor Costs in the Transition Economies of Eastern Europe, the South Caucasus, and Central Asia?
title_full_unstemmed Have Remittances Affected Real Unit Labor Costs in the Transition Economies of Eastern Europe, the South Caucasus, and Central Asia?
title_sort have remittances affected real unit labor costs in the transition economies of eastern europe, the south caucasus, and central asia?
publisher World Bank, Washington, DC
publishDate 2021
url http://documents.worldbank.org/curated/en/305811611083394794/Have-Remittances-Affected-Real-Unit-Labor-Costs-in-the-Transition-Economies-of-Eastern-Europe-the-South-Caucasus-and-Central-Asia
http://hdl.handle.net/10986/35027
_version_ 1764482167465836544

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