| Summary: | Migration can affect labor participation decisions back home, either by stimulating work
to replace foregone labor, or reducing it through the role of remittances. Using evidence
from a rural panel for El Salvador with a comprehensive module on agricultural income
shocks, this study finds that migration and remittances generate only minor labor
reallocation effects within households. Contradicting previous evidence based on cross
section data, no impact is registered for off-farm labor supply. However, remittances and
migration tend to increase female participation and hours worked in agricultural activities,
and reduce time dedicated to off-farm and domestic activities. No major effects are found
on self-employment.
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