Gender Impact of Remittances - Empirical Evidence from Morocco

Abstract

International migration is a worldwide phenomenon which affects both origin and host countries. Its impact differs considerably across countries. For instance, remittances can be used for entrepreneurship and productive investment which would rise job opportunities and income of people in the remittance receiving countries, or to loosen constraints associated with credit market failures. Furthermore, remittances can create a sense of dependency among people holding front in the country of origin, emerging a contraction of their production effort. Interestingly, for many the migration experience is likely to play a substantial role in altering gender roles and women’s status and improving gender equality. By delving into the case of Morocco, the present research seeks to assess whether migrant remittances minimize inequalities between men and women in the Moroccan labor market. For this purpose, we use data from the 2013-14 national survey of household consumption expenditure. Throughout this analysis, we control for possible endogeneity bias by means of Instrumental Variables method. Our results robustly reveal that remittances exert a significant influence on the Moroccan women’s contribution in the labor market. They even exacerbate the inequalities between men and women in the Moroccan the labor market. Furthermore, these funds sustain status quo in the Moroccan labor market keeping women in precarious jobs that impact their dignity. Nevertheless, we must pinpoint that these funds have a little potential to overcome social, cultural, and financial constraints limiting women’s economic choices and forcing them to turn to poorer quality work.

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