Remittances driving up prices, shrinking job market in emerging economies.
The article examines how an increase in remittances affects economies, focusing on El Salvador. The researchers use a model to show that higher remittances lead to less work and more spending on non-tradable goods. This causes non-tradable prices to rise, making them more attractive to invest in. As a result, labor shifts away from tradable goods, leading to a decline in that sector.