This article appears in the following Oxford Review of Economic Policy issue: LABOUR MIGRATION IN EUROPE [View the issue table of contents]
The determinants of migrant remittances
* International Peace Research Institute, Oslo (PRIO), e-mail: jorgen{at}prio.no
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Abstract |
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This article explores the factors that account for variation in remittance flows. Why do some immigrants send much more money to their country of origin than others? This is a question that, in the aggregate, has implications for national economies and migration-related policy. The analysis departs from the classic studies of remittances and considers how the context of contemporary migration in Europe is likely to affect remittance patterns. Possible influences on remittance-sending are disaggregated into nine domains, and each is discussed with reference to theoretical arguments and empirical findings. The temporal aspects of remittance-sending are discussed separately. The final section of the article considers implications of the micro-level analysis for aggregate remittance flows and policy. It is argued that the focus on altruism versus self-interest in the literature has partly diverted attention from explaining the actual variation that is important in a policy perspective.
Key Words: development • family relations • migration • private transfers • remittances
1 The following publications have been reviewed: (Amery and Anderson, 1995, Amuedo-Dorantes and Pozo, 2006a,b, de la Brière et al., 1997, Brown, 1997, Cai, 2003, Clark and Drinkwater, 2007, Cox et al., 1998, Craciun, 2006, van Dalen et al., 2005, DeVoretz and Vadean, 2005, Dostie and Vencatachellum, 2002, Durand et al., 1996, Fairchild and Simpson, 2004, Funkhouser, 1995, Goza and Marteleto, 1998, Grieco, 2003, Gubert, 2002, Hoddinott, 1994, Holst and Schrooten, 2006, Itzigsohn, 1995, Konica and Filer, 2005, Lerch and Wanner, 2006, Liu and Reilly, 2004, Lucas and Stark, 1985, Maggard, 2004, Massey and Basem, 1992, Menjívar et al., 1998, Merkle and Zimmermann, 1992, Osaki, 2003, Osili, 2007, Pleitez-Chavez, 2004, Posel, 2001, Sana, 2005, Simati and Gibson, 2001, Taylor, 2000, Vargas-Silva, 2006). Some include more than one study, for instance in multiple locations.