This study examines the role of migrant's remittances on labor supply in remittance receiving households. A simple labor choice model is developed which is extended to include self-employment. Unlike earlier studies, fixed effects estimations as well as an instrumental approach are applied....

We investigate the returns to capital and capital accumulation using panel data of Peruvian micro enterprises (MEs). Marginal returns to capital are found to be very high at low levels of capital, but rapidly decreasing at higher levels. The dynamic analyses of capital accumulation in MEs...