This study investigates the effects of migration and remittances on labour market participation and human capital development in Senegal. Using econometric models to analyze data from a 2009 household survey of the World Bank on migration and remittances, a team of local researchers – selected for support under the PAGE initiative in 2014 – finds that households receiving remittances from migrant members are less likely to participate in the labour market. A tendency that may be explained as a form of parasitism generated by the additional income. On the other hand, despite lower levels of per capita expenditures (indicating their relative poverty), these households tend to spend more on education and health, than those without migrants. This would suggest that remittances contribute to improving human capital development in Senegal. Based on these findings, the researchers conclude that the government should implement policies that create economic opportunities for households with migrants, to promote entrepreneurship and reallocate remittance flows towards more productive uses and investments. Find out more in the following PEP publications:
