Abstract
The paper examines the effect of overseas migration and remittances on the remaining spouses' labor supply behavior by employing alternative specifications of the labor supply function that are corrected for endogeneity in remittances. Using the merged 2003 Philippine labor and income survey data sets, the findings reveal that a spouse's overseas migration leads to an overall reduction in hours worked of the remaining spouse. For the stayer wives of migrant husbands, the reduced labor supply is driven significantly by the presence of school-aged children which is associated with a shift from full-time paid employment to a withdrawal from the labor force. For the husband sample, higher education is associated significantly with lower labor supply in the presence of young children but with more market time in migrant households with no young children. The findings provide some evidence that the stayer spouses in migrant households reallocate time from market work towards more time in home production rather than to increased consumption of leisure.
Published Version
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