IMF Staff Country Reports

Guatemala : Selected Issues Paper

Author/Editor:

International Monetary Fund. Western Hemisphere Dept.

Publication Date:

June 8, 2018

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

This Selected Issues paper analyzes remittances and households’ behavior in Guatemala. Remittances are a structural feature of the Guatemalan economy. In 2017, remittance flows accounted for over 11 percent of GDP and benefited over 1.5 million Guatemalan households. The effects of remittances on the labor supply are estimated. There is no evidence of remittance-induced work disincentives. The results suggest that the labor supply for members of remittance-receiving households is relatively more elastic, most markedly so for the 41-65 age group: a 1 percent increase in weekly wages leads to a 0.5 percent increase in weekly hours worked for members of remittance-receiving households, versus a 0.2 percent increase for non-remittance-receiving households.

Series:

Country Report No. 18/155

Subject:

Banking sector Emigration and immigration Fiscal policy Governance Household expenditure Inclusive growth Inflation persistence Investment Remittances Selected issues Stress testing Tax reforms