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Subjectively-assessed Welfare and International Remittances: Evidence from Tonga

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Author Info

  • Richard Brown
  • Eliana Jimenez

Abstract

Using data from a customised household survey in Tonga we assess the responsiveness of migrants' remittances to perceived needs of recipients. We extend a mixed-motives model, incorporating subjectively-assessed recipient welfare. We find evidence supportive of altruism for households below a subjective threshold, implying that remittances provide important social protection for the poor. We also find a positive relationship for those above the threshold implying that welfare improvements in migrant-sending countries could increase or decrease remittance flows depending on pre-transfer welfare level. The effects of remittances on poverty alleviation and income distribution are hence more complex and ambiguous than previous studies suggest.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/00220388.2010.501376
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Journal of Development Studies.

Volume (Year): 47 (2011)
Issue (Month): 6 ()
Pages: 829-845

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Handle: RePEc:taf:jdevst:v:47:y:2011:i:6:p:829-845

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Cited by:
  1. Richard P.C Brown & Gareth Leeves & Prabha Prayaga, 2012. "Sharing Norm Pressures and Community Remittances: Evidence from a Natural Disaster in the Pacific Islands," Discussion Papers Series 471, School of Economics, University of Queensland, Australia.
  2. Fransen, Sonja & Mazzucato, Valentina, 2014. "Remittances and Household Wealth after Conflict: A Case Study on Urban Burundi," World Development, Elsevier, vol. 60(C), pages 57-68.
  3. Akay, Alpaslan & Giulietti, Corrado & Robalino, Juan David & Zimmermann, Klaus F., 2012. "Remittances and Well-Being among Rural-to-Urban Migrants in China," IZA Discussion Papers 6631, Institute for the Study of Labor (IZA).

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