21

**Table 4.  IV estimates of effects of low-skilled migration (less than 8 years of schooling) on receipt of international remittances**

|||Dependent variable =<br>|Per capita international r<br>|emittances received by<br>|labor-sending country<br>|<br>|
|---|---|---|---|---|---|---|
|Variable|(1)|(2)|(3)|(4)|(5)|(6)|
|Instrumented endogenous variables|||||||
|Percent of low-skilled migrants (less than 8 years schooling) in|0.914|1.026|1.985|1.949|1.463|1.487|
|total migrants from labor-sending country in OECD|(1.96)*|(2.05)*|(3.79)**|(3.99)**|(2.91)**|(3.04)**|
|Stock of total migrants from labor-sending country in OECD|0.193|0.179|0.185|0.201|0.146|0.139|
||(1.55)|(1.41)|(0.90)|(1.03)|(1.02)|(0.97)|
|Poverty headcount in labor-sending country ($1.08/person/day)|-0.497|-|-0.465|-|-0.498|-|
||(-2.20)||(-1.81)||(-0.93)||
|Poverty gap in labor-sending country|-|-0.347|-|-0.429|-|-0.338|
|||(-1.74)||(-1.89)||(0.90)|
|Exogenous regressors|||||||
|Percent of population under 14 years in labor-sending country|3.336|3.101|3.382|3.049|3.276|3.060|
||(2.09)*|(2.07)*|(1.94)|(1.78)|(2.12)*|(2.03)*|
|Per capita GDP in labor-sending country (constant 2000 dollars)|7.009|7.042|-1.716|-2.523|6.898|6.951|
||(2.27)*|(2.18)*|(-0.56)|(-0.80)|(2.19)*|(2.12)*|
|Per capita GDP squared|-0.484|-0.471|0.143|0.207|-0.473|-0.462|
||(-2.17)*|(-2.04)*|(0.65)|(0.91)|(-2.06)*|(-1.93)|
|Gini coefficient in labor-sending country|-3.477|-3.679|-2.858|-2.785|-3.391|-3.615|
||(-2.24)*|(-2.44)*|(-1.23)|(-1.18)|(-1.98)*|(-2.29)*|
|Real interest rate (percent) in labor-sending country|0.445|0.453|0.731|0.725|0.515|0.510|
||(2.27)*|(2.32)*|(3.55)**|(3.57)**|(2.49)*|(2.49)*|
|Cost to send $200 remittances to country|-1.318|-1.204|-1.117|-0.871|-1.468|-1.339|
||(-1.68)|(-1.44)|(-1.93)|(-1.39)|(-1.62)|(-1.29)|
|Exchange rate spread in labor-sending country|-0.087|-0.125|-0.324|-0.390|-0.108|-0.140|
||(-0.48)|(-0.61)|(-1.80)|(-1.94)|(-0.56)|(-0.66)|
|War in labor-sending country (dummy)|0.729|0.781|0.362|0.489|0.665|0.723|
||(1.65)|(1.70)|(0.91)|(1.13)|(1.69)|(1.78)|
|Constant|-38.701|-40.048|-13.262|-10.765|-39.176|-40.511|
||(-3.53)**|(-3.46)**|(-1.20)|(-0.93)|(-3.46)**|(-3.58)**|
|N<br>|62|62|53|53|62|62|
|Centered R<sup>2</sup>|0.533|0.525|0.591|0.592|0.544|0.532|
|F-statistic|5.78|4.84|8.86|8.68|7.48|6.94|
|Instrument set|A|A|B|B|C|C|
|Anderson LR-statistic (identification/IV relevance test)|37.182|37.934|44.788|44.092|5.416|8.875|
|p-value for Anderson LR-statistic|0.000|0.000|0.000|0.000|0.020|0.002|
|Hansen J-statistic (overidentification test)|0.534|0.668|4.439|3.653|n.a.|n.a.|
|p-value for Hansen J-statistic|0.465|0.413|0.109|0.161|||

Notes: All variables expressed in logs; all equations include 5 regional dummy variables which are not reported here. Robust t-statistics shown in parentheses. Number of observations reduced in table because of missing values for certain variables. See Appendix Table 1 for countries and survey dates. * Significant at the 0.05 level ** Significant at the 0.01 level n.a. not applicable as equation is exactly identified Instrument Sets: A: Distance, language B: Total population, population density, percent urban population

- C: Percent urban population