Syndicate content

Add new comment

Submitted by Tim Ogden on
I have neither read the paper nor discussed with Michael, so this is pure speculation that he and Erwin may have ruled out, but here goes: I wonder about the relative volatility of income between the emigrants and the non-emigrants. One possible explanation for higher spending of static income is that households are more comfortable with short-term spending because of certainty of income from remittances. In many places, and I presume the Philippines, even wage income from jobs can be volatile and uncertain. Presumably this is not the case among employees of Korean manufacturing firms.