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This study investigates how migration and remittances affect labour market participation in Senegal. Further, it examines the effect of remittances on human capital development. The results reveal that migration and remittances reduce labour market participation of household members with migrants. More importantly, we find that the labour market participation depends negatively on the level of remittances, which supports the reservation wage theory. We also find that remittances increase expenditures on human capital development, as approximated by education and health spending. These findings hold true across specifications and econometric estimation procedures.

Migration, Remittances, Labour Market and Human Capital in Senegal