The Transfer of the Remittance Fee from the Migrant to the Household
AbstractThis paper discusses the problem of increasing remittances. It is often argued that the remittance fee needs to be lowered to increase remittances. We show that remittances become larger by increasing the receiving fee whereas they become larger by reducing the sending fee. We also show that, by transferring the sending fee from the migrant to the household, remittances become larger than those without the transfer. It is shown that for this purpose the home country’s government can collect the sending fee from the household as taxes, and to pay it to the migrant as a subsidy.
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Bibliographic InfoArticle provided by Center for Economic Integration, Sejong University in its journal Journal of Economic Integration.
Volume (Year): 25 (2010)
Issue (Month): ()
Migrant; Household; Transfer; Remittance Fee; Altruism;
Find related papers by JEL classification:
- D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- F24 - International Economics - - International Factor Movements and International Business - - - Remittances
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