Labor Supply and Time Allocation in Remittance-Receiving Households: Evidence from Rural Pakistan

Abstract

This paper analyzes how remittance receipts affect labor force participation and daily time allocation of individuals residing in remittance-receiving households of rural Pakistan. In particular, I use the first Time-Use Survey of Pakistan (2007) to assess how members of remittance-receiving households distribute time over market production and its complements, namely, home production, leisure consumption and educational investment. I employ the statistical technique of propensity score matching to find a comparison group for individuals residing in remittance-receiving households. My results indicate that impact of remittances on daily activity sets cannot be analogously identified across genders. Men residing in remittance-receiving households devote less time to market production and consume more leisure. Women, on the other hand, invest more time in home production while maintaining the same level of market production.