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IMPACT OF INTERNATIONAL REMITTANCES ON LABOUR SUPPLY IN NIGERIA

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Abstract

The broad objective of the work is to critically analyse the impact of the current large inflow of remittances into the country on labour supply by the recipients. The Nigerian General Household Survey data of 2013 conducted and published by the National Bureau of Statistics (NBS) was analysed with the aid of descriptive Statistics and Propensity Score Matching method. The findings from the descriptive analysis show that the amount of remittances on average makes up to 65.125% of the total income of the recipients, with average annual frequency of 4 times per year. The ATT result from PSM show that for the whole sample, remittances do not affect the average labour supply of those that receive remittances. However, the ATT by sub-group show that there is a significant difference in labour supply of those that are self-employed in agricultural sector, professional or technical activities, and across different age group, and the amount they would have supplied without remittances. The result however shows that the effect on the teenagers and the elderly are negative while that of the active population is positive. The ATU result also show that for the whole sample, there is no significant impact of remittance inflow on labour supply of those that do not receive remittances.