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Remittances from International Migration: A Comparison of El Salvador and Nicaragua

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Author Info
Funkhouser, Edward
Abstract

I use household data from El Salvador and Nicaragua to examine the determinants of remittances from international migration. Nearly twice as many households in San Salvador, the capital of El Salvador, receive remittances from relatives abroad than do households in Managua, the capital of Nicaragua, and of those who receive remittances, the average remittance received in San Salvador is over double that in Managua-$119/month to $45/month. I find that the role of observable characteristics in explaining differences in the level of remittances, accounting for the self-selection in the decision to remit, is not large. The difference is explained by differences in the behavioral coefficients and by differences in the self-selection bias of those who remit out of the pool of emigrants between the two countries. Copyright 1995 by MIT Press.

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Publisher Info
Article provided by MIT Press in its journal Review of Economics & Statistics.

Volume (Year): 77 (1995)
Issue (Month): 1 (February)
Pages: 137-46
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Handle: RePEc:tpr:restat:v:77:y:1995:i:1:p:137-46

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  1. Katherine Meckel, 2008. "Remittance behavior among new U.S. immigrants," Working Paper Series WP-08-19, Federal Reserve Bank of Chicago. [Downloadable!]
  2. Rupayan Gupta & S. Aaron Hegde, 2009. "An Exploratory Study of Financial Remittances Among Non-Resident Indians in the United States," Journal of Family and Economic Issues, Springer, vol. 30(2), pages 184-192, June. [Downloadable!] (restricted)
  3. Kasey Q. Maggard, 2004. "The role of social capital in the remittance decisions of Mexican migrants from 1969 to 2000," Working Paper 2004-29, Federal Reserve Bank of Atlanta. [Downloadable!]
  4. Mathias Sinning, 2007. "Determinants of Savings and Remittances – Empirical Evidence from Immigrants to Germany," Ruhr Economic Papers 0023, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen. [Downloadable!]
    Other versions:
  5. Acosta, Pablo, 2006. "Labor supply, school attendance, and remittances from international migration : the case of El Salvador," Policy Research Working Paper Series 3903, The World Bank. [Downloadable!]
  6. Beine, Michel & Docquier, Frédéric & Rapoport, Hillel, 2003. "Brain Drain and LDCs’ Growth: Winners and Losers," IZA Discussion Papers 819, Institute for the Study of Labor (IZA). [Downloadable!]
  7. Thomas K. Bauer & Mathias G. Sinning, 2009. "The Purpose of Remittances – Evidence from Germany," Ruhr Economic Papers 0109, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen. [Downloadable!]
  8. Maurice Kugler, . "Migrant Remittances, Human Capital Formation and Job Creation Externalities in Colombia," Borradores de Economia 370, Banco de la Republica de Colombia. [Downloadable!]
    Other versions:
  9. Rapoport, Hillel & Docquier, Frédéric, 2005. "The Economics of Migrants’ Remittances," IZA Discussion Papers 1531, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  10. de la Briere, Benedicte & de Janvry, Alain & Lambert, Sylvie & Sadoulet, Elisabeth, 1997. "Why do migrants remit?," FCND discussion papers 37, International Food Policy Research Institute (IFPRI). [Downloadable!]
  11. Docquier, Frederic & Marfouk, Abdeslam, 2004. "Measuring the international mobility of skilled workers (1990-2000) : release 1.0," Policy Research Working Paper Series 3381, The World Bank. [Downloadable!]
  12. Fernando Borraz, 2005. "Assessing the Impact of Remittances on Schooling: the Mexican Experience," Global Economy Journal, Berkeley Electronic Press, vol. 5(1). [Downloadable!]
  13. Hendrik P. van Dalen & George Groenewold & Tineke Fokkema, 2005. "Remittances and their Effect on Emigration Intentions in Egypt, Morocco and Turkey," Tinbergen Institute Discussion Papers 05-030/1, Tinbergen Institute. [Downloadable!]
  14. David A. Grigorian & Tigran A. Melkonyan, 2008. "Microeconomic Implications of Remittances in an Overlapping Generations Model with Altruism and Self-Interest," IMF Working Papers 08/19, International Monetary Fund. [Downloadable!]
  15. Amin, Mohammad & Mattoo, Aaditya, 2007. "Migration from Zambia : ensuring temporariness through cooperation," Policy Research Working Paper Series 4145, The World Bank. [Downloadable!]
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