International Migration and Household Agricultural Production Decisions: The Case of El Salvador
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The purpose of this paper is to determine the impact of remittances on remittance-receiving households' agricultural production activities. The empirical analysis corrects for the endogeneity of remittances using an instrumental variable random effects model. Results suggest that remittances do not change the total labor hours supplied by the household but remittances do affect different family members' labor allocations. Specifically, an increase in remittances significantly increases adult male on-farm labor, significantly decreases adult female off-farm labor, and significantly increases child off-farm work.