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Remittances, migrants' education and immigration policy: Theory and evidence from bilateral data

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  • Docquier, Frédéric
  • Rapoport, Hillel
  • Salomone, Sara

Abstract

We investigate the relationship between remittances and migrants' education both theoretically and empirically, using original bilateral remittance data. At a theoretical level we lay out a model of remittances interacting migrants' human capital with two dimensions of immigration policy: restrictiveness, and selectivity. The model predicts that the relationship between remittances and migrants' education is ambiguous and depends on the immigration policy conducted at destination. The effect of education is more likely to be positive when the immigration policy is more restrictive and less skill-selective. These predictions are then tested empirically using bilateral remittance and migration data and proxy measures for the restrictiveness and selectivity of immigration policies at destination. The results strongly support the theoretical analysis, suggesting that immigration policies determine the sign and magnitude of the relationship between remittances and migrants' education.

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Bibliographic Info

Article provided by Elsevier in its journal Regional Science and Urban Economics.

Volume (Year): 42 (2012)
Issue (Month): 5 ()
Pages: 817-828

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Handle: RePEc:eee:regeco:v:42:y:2012:i:5:p:817-828

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Web page: http://www.elsevier.com/locate/regec

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Keywords: Remittances; Migration; Brain drain; Immigration policy;

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References

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Citations

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Cited by:
  1. Kaczmarczyk, Pawel, 2013. "Money for Nothing? Ukrainian Immigrants in Poland and their Remitting Behaviors," IZA Discussion Papers 7666, Institute for the Study of Labor (IZA).
  2. Simone Bertoli & Hillel Rapoport, 2013. "Heaven's Swing Door: Endogenous skills, migration networks and the effectiveness of quality-selective immigration policies," CReAM Discussion Paper Series 1330, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  3. Assaf Razin & Jackline Wahba, 2011. "Welfare Magnet Hypothesis, Fiscal Burden and Immigration Skill Selectivity," NBER Working Papers 17515, National Bureau of Economic Research, Inc.
  4. Kahanec, Martin, 2012. "Report No. 49: Skilled Labor Flows: Lessons from the European Union," IZA Research Reports 49, Institute for the Study of Labor (IZA).
  5. Martin Kahanec, 2013. "Skilled Labor Flows: Lessons from the European Union," Research Reports 1, Central European Labour Studies Institute (CELSI).
  6. Vikhrov Dmytro, 2013. "Welfare Effects of Labor Migration," CERGE-EI Working Papers wp491, The Center for Economic Research and Graduate Education - Economic Institute, Prague.
  7. Diego Alberto Sandoval Herrera & María Fernanda Reyes Roa, 2012. "¿Por qué los migrantes envían remesas?: Repaso de las principales motivaciones microeconómicas," BORRADORES DE ECONOMIA 010036, BANCO DE LA REPÚBLICA.
  8. Alex Julca, 2013. "Can Immigrant Remittances Support Development Finance?," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 60(3), pages 365-380, May.
  9. Giulia Bettin & Andrea Filippo Presbitero & Nikola Spatafora, 2014. "Remittances and vulnerability in developing countries," Mo.Fi.R. Working Papers 93, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.

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