International Migration, Human Capital, and Entrepreneurship : Evidence from Philippine Migrants' Exchange Rate Shocks

Millions of households in developing countries receive financial support from family members working overseas. How do the economic prospects of overseas migrants affect origin-household investments-in particular, in child human capital and household enterprises? Yang examines Philippine households&#...

Full description

Bibliographic Details
Main Author:	Yang, Dean
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	AGRICULTURE CAPITA INCOME CHILD SCHOOLING CLUSTERS COMPENSATION OF EMPLOYEES CREDIT CONSTRAINTS DEVALUATION DURABLE GOOD ECONOMIC GROWTH ECONOMIC MODELS ELASTICITY EXCHANGE RATE EXCHANGE RATE CHANGES EXCHANGE RATES FAMILY INCOME FINANCIAL CRISIS FOREIGN CURRENCY FOREIGN CURRENCY EARNINGS GEOGRAPHIC DISPERSION HOUSEHOLD CHARACTERISTICS HOUSEHOLD HEAD HOUSEHOLD INCOME HOUSEHOLD MEMBER HOUSEHOLD MEMBERS HOUSEHOLD SIZE HOUSEHOLD SURVEY HOUSEHOLD SURVEYS HUMAN CAPITAL IMPORTANCE OF REMITTANCES INCOME INCOME LEVELS INCOME SHOCK INCOME SOURCES INCOMES INCREASE IN REMITTANCES INTERNATIONAL MIGRATION LIFETIME INCOME LIQUIDITY MIGRANT SAVINGS MIGRANTS MILLION PEOPLE NORMAL GOOD OVERSEAS MIGRANTS PER CAPITA INCOME PERMANENT INCOME PESOS PHILIPPINE PESOS POSITIVE INCOME PRODUCTIVE ASSETS PUBLIC POLICY REAL GDP REGRESSION ANALYSIS REMITTANCE REMITTANCE RECEIPTS REMITTANCES REPRESENTATIVE SAMPLE SMALL BUSINESS SMALL BUSINESS OWNERSHIP STANDARD ERRORS SURVEY DATA UNEMPLOYMENT UNEMPLOYMENT RATE WAGE RATES WAGES WEIGHTED AVERAGE
Online Access:	http://documents.worldbank.org/curated/en/2005/04/6570284/international-migration-human-capital-entrepreneurship-evidence-philippine-migrants-exchange-rate-shocks http://hdl.handle.net/10986/8469

id	okr-10986-8469
recordtype	oai_dc
spelling	okr-10986-84692021-04-23T14:02:43Z International Migration, Human Capital, and Entrepreneurship : Evidence from Philippine Migrants' Exchange Rate Shocks Yang, Dean AGRICULTURE CAPITA INCOME CHILD SCHOOLING CLUSTERS COMPENSATION OF EMPLOYEES CREDIT CONSTRAINTS DEVALUATION DURABLE GOOD ECONOMIC GROWTH ECONOMIC MODELS ELASTICITY EXCHANGE RATE EXCHANGE RATE CHANGES EXCHANGE RATES FAMILY INCOME FINANCIAL CRISIS FOREIGN CURRENCY FOREIGN CURRENCY EARNINGS GEOGRAPHIC DISPERSION HOUSEHOLD CHARACTERISTICS HOUSEHOLD HEAD HOUSEHOLD INCOME HOUSEHOLD MEMBER HOUSEHOLD MEMBERS HOUSEHOLD SIZE HOUSEHOLD SURVEY HOUSEHOLD SURVEYS HUMAN CAPITAL IMPORTANCE OF REMITTANCES INCOME INCOME LEVELS INCOME SHOCK INCOME SOURCES INCOMES INCREASE IN REMITTANCES INTERNATIONAL MIGRATION LIFETIME INCOME LIQUIDITY MIGRANT SAVINGS MIGRANTS MILLION PEOPLE NORMAL GOOD OVERSEAS MIGRANTS PER CAPITA INCOME PERMANENT INCOME PESOS PHILIPPINE PESOS POSITIVE INCOME PRODUCTIVE ASSETS PUBLIC POLICY REAL GDP REGRESSION ANALYSIS REMITTANCE REMITTANCE RECEIPTS REMITTANCES REPRESENTATIVE SAMPLE SMALL BUSINESS SMALL BUSINESS OWNERSHIP STANDARD ERRORS SURVEY DATA UNEMPLOYMENT UNEMPLOYMENT RATE WAGE RATES WAGES WEIGHTED AVERAGE Millions of households in developing countries receive financial support from family members working overseas. How do the economic prospects of overseas migrants affect origin-household investments-in particular, in child human capital and household enterprises? Yang examines Philippine households' responses to overseas members' economic shocks. Overseas Filipinos work in dozens of foreign countries which experienced sudden (and heterogeneous) changes in exchange rates due to the 1997 Asian financial crisis. Appreciation of a migrant's currency against the Philippine peso leads to increases in household remittances received from overseas. The estimated elasticity of Philippine peso remittances with respect to the Philippine/foreign exchange rate is 0.60. In addition, these positive income shocks lead to enhanced human capital accumulation and entrepreneurship in origin households. Favorable migrant shocks lead to greater child schooling, reduced child labor, and increased educational expenditure in origin households. More favorable exchange rate shocks also raise hours worked in self-employment and lead to greater entry into relatively capital-intensive enterprises by migrants' origin households. 2012-06-19T19:46:33Z 2012-06-19T19:46:33Z 2005-04 http://documents.worldbank.org/curated/en/2005/04/6570284/international-migration-human-capital-entrepreneurship-evidence-philippine-migrants-exchange-rate-shocks http://hdl.handle.net/10986/8469 English Policy Research Working Paper; No. 3578 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research East Asia and Pacific Philippines
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	AGRICULTURE CAPITA INCOME CHILD SCHOOLING CLUSTERS COMPENSATION OF EMPLOYEES CREDIT CONSTRAINTS DEVALUATION DURABLE GOOD ECONOMIC GROWTH ECONOMIC MODELS ELASTICITY EXCHANGE RATE EXCHANGE RATE CHANGES EXCHANGE RATES FAMILY INCOME FINANCIAL CRISIS FOREIGN CURRENCY FOREIGN CURRENCY EARNINGS GEOGRAPHIC DISPERSION HOUSEHOLD CHARACTERISTICS HOUSEHOLD HEAD HOUSEHOLD INCOME HOUSEHOLD MEMBER HOUSEHOLD MEMBERS HOUSEHOLD SIZE HOUSEHOLD SURVEY HOUSEHOLD SURVEYS HUMAN CAPITAL IMPORTANCE OF REMITTANCES INCOME INCOME LEVELS INCOME SHOCK INCOME SOURCES INCOMES INCREASE IN REMITTANCES INTERNATIONAL MIGRATION LIFETIME INCOME LIQUIDITY MIGRANT SAVINGS MIGRANTS MILLION PEOPLE NORMAL GOOD OVERSEAS MIGRANTS PER CAPITA INCOME PERMANENT INCOME PESOS PHILIPPINE PESOS POSITIVE INCOME PRODUCTIVE ASSETS PUBLIC POLICY REAL GDP REGRESSION ANALYSIS REMITTANCE REMITTANCE RECEIPTS REMITTANCES REPRESENTATIVE SAMPLE SMALL BUSINESS SMALL BUSINESS OWNERSHIP STANDARD ERRORS SURVEY DATA UNEMPLOYMENT UNEMPLOYMENT RATE WAGE RATES WAGES WEIGHTED AVERAGE
spellingShingle	AGRICULTURE CAPITA INCOME CHILD SCHOOLING CLUSTERS COMPENSATION OF EMPLOYEES CREDIT CONSTRAINTS DEVALUATION DURABLE GOOD ECONOMIC GROWTH ECONOMIC MODELS ELASTICITY EXCHANGE RATE EXCHANGE RATE CHANGES EXCHANGE RATES FAMILY INCOME FINANCIAL CRISIS FOREIGN CURRENCY FOREIGN CURRENCY EARNINGS GEOGRAPHIC DISPERSION HOUSEHOLD CHARACTERISTICS HOUSEHOLD HEAD HOUSEHOLD INCOME HOUSEHOLD MEMBER HOUSEHOLD MEMBERS HOUSEHOLD SIZE HOUSEHOLD SURVEY HOUSEHOLD SURVEYS HUMAN CAPITAL IMPORTANCE OF REMITTANCES INCOME INCOME LEVELS INCOME SHOCK INCOME SOURCES INCOMES INCREASE IN REMITTANCES INTERNATIONAL MIGRATION LIFETIME INCOME LIQUIDITY MIGRANT SAVINGS MIGRANTS MILLION PEOPLE NORMAL GOOD OVERSEAS MIGRANTS PER CAPITA INCOME PERMANENT INCOME PESOS PHILIPPINE PESOS POSITIVE INCOME PRODUCTIVE ASSETS PUBLIC POLICY REAL GDP REGRESSION ANALYSIS REMITTANCE REMITTANCE RECEIPTS REMITTANCES REPRESENTATIVE SAMPLE SMALL BUSINESS SMALL BUSINESS OWNERSHIP STANDARD ERRORS SURVEY DATA UNEMPLOYMENT UNEMPLOYMENT RATE WAGE RATES WAGES WEIGHTED AVERAGE Yang, Dean International Migration, Human Capital, and Entrepreneurship : Evidence from Philippine Migrants' Exchange Rate Shocks
geographic_facet	East Asia and Pacific Philippines
relation	Policy Research Working Paper; No. 3578
description	Millions of households in developing countries receive financial support from family members working overseas. How do the economic prospects of overseas migrants affect origin-household investments-in particular, in child human capital and household enterprises? Yang examines Philippine households' responses to overseas members' economic shocks. Overseas Filipinos work in dozens of foreign countries which experienced sudden (and heterogeneous) changes in exchange rates due to the 1997 Asian financial crisis. Appreciation of a migrant's currency against the Philippine peso leads to increases in household remittances received from overseas. The estimated elasticity of Philippine peso remittances with respect to the Philippine/foreign exchange rate is 0.60. In addition, these positive income shocks lead to enhanced human capital accumulation and entrepreneurship in origin households. Favorable migrant shocks lead to greater child schooling, reduced child labor, and increased educational expenditure in origin households. More favorable exchange rate shocks also raise hours worked in self-employment and lead to greater entry into relatively capital-intensive enterprises by migrants' origin households.
format	Publications & Research :: Policy Research Working Paper
author	Yang, Dean
author_facet	Yang, Dean
author_sort	Yang, Dean
title	International Migration, Human Capital, and Entrepreneurship : Evidence from Philippine Migrants' Exchange Rate Shocks
title_short	International Migration, Human Capital, and Entrepreneurship : Evidence from Philippine Migrants' Exchange Rate Shocks
title_full	International Migration, Human Capital, and Entrepreneurship : Evidence from Philippine Migrants' Exchange Rate Shocks
title_fullStr	International Migration, Human Capital, and Entrepreneurship : Evidence from Philippine Migrants' Exchange Rate Shocks
title_full_unstemmed	International Migration, Human Capital, and Entrepreneurship : Evidence from Philippine Migrants' Exchange Rate Shocks
title_sort	international migration, human capital, and entrepreneurship : evidence from philippine migrants' exchange rate shocks
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2005/04/6570284/international-migration-human-capital-entrepreneurship-evidence-philippine-migrants-exchange-rate-shocks http://hdl.handle.net/10986/8469
_version_	1764408185110659072

International Migration, Human Capital, and Entrepreneurship : Evidence from Philippine Migrants' Exchange Rate Shocks

Similar Items