Remittance income uncertainty and asset accumulation

IZA Journal of Labor & Development

Table 10 Instrumental variable two part model for share of households’ expenditures on human, physical and financial assets

	First part				Second part
Variables	Coefficient	Robust S.E.	M.E. on Prob (Y > 0)	Robust S.E.	Coefficient/ M.E. on E(Y\|Y > 0)	Robust S.E.
HH remittance income (1,000 pesos)	0.011***	0.002	0.003***	0.001	0.005*	0.003
Remittance income volatility	0.076***	0.031	0.018***	0.007	0.083***	0.029
Female headed HH	−0.035***	0.010	−0.009***	0.002	−0.009	0.012
Number of young children in the HH	0.012*	0.006	0.003*	0.002	−0.029***	0.006
Number of elderly HH members	−0.103**	0.007	−0.025***	0.002	−0.029***	0.007
Number of HH members with high school or above	0.152***	0.005	0.037***	0.001	0.014	0.020
Number of HH members with middle school	0.080***	0.004	0.019***	0.001	0.020**	0.009
Number of HH members employed	−0.001	0.004	0.000	0.001	−0.033***	0.007
Household size	0.049***	0.003	0.012***	0.001	0.029***	0.004
Rural household	−0.141***	0.010	−0.035***	0.003	0.092***	0.025
Year fixed-effects	Yes				Yes
Mexican state fixed-effects	Yes				Yes
Mexican state-level time trends	Yes				Yes
Observations:	159,940				126,123
Significance	Wald Chi2 = 31,406.77 with Prob > Chi2 = 0.000				R-squared = 0.107

Notes: ***Significant at the 1 percent level or better, **significant at 5 percent level or better and *significant at the 10 percent level or better. All regressions include a constant term. Standard errors are clustered at the Mexican state level. Marginal effects are evaluated at the mean.