"This article focuses on the impact of remittances on labour market participation using propensity score matching. Using household survey data for Albania, this article relies on the matching approach for identification. Nearest neighbour and kernel estimators are used to obtain the matching results. The vector of covariates includes information related to individual and household characteristics, such as; age; gender; schooling; area of residence; etc. In the model, household incomes are considered separately from remittances in order to identify whether income from remittances has the same effect as other types of household non-labour income in the decision as to whether or not to participate in the labour market. Empirical results show that remittances have a statistically negative impact as regards the labour market participation of women, both in terms of the probability of working and in terms of their hours of work. However, no evidence is found for the impact of such capital flows in the behaviour of men in their labour market activities."

Support: Digital;Paper