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Remittances, Migrants’ Education and Immigration Policy: Theory and Evidence from Bilateral Data

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  • Frédéric Docquier
  • Hillel Rapoport

    ()
    (Bar-Ilan University)

  • Sara Salomone

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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File URL: http://econ.biu.ac.il/files/economics/working-papers/2011-27.pdf
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Bibliographic Info

Paper provided by Department of Economics, Bar-Ilan University in its series Working Papers with number 2011-27.

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Length: 42 pages
Date of creation: Oct 2011
Date of revision:
Handle: RePEc:biu:wpaper:2011-27

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Postal: Faculty of Social Sciences, Bar Ilan University 52900 Ramat-Gan
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Web page: http://econ.biu.ac.il
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Keywords: Remittances; Migration; Brain Drain; Immigration Policy.;

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References

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  1. Jeffrey Frankel, 2011. "Are Bilateral Remittances Countercyclical?," Open Economies Review, Springer, vol. 22(1), pages 1-16, February.
  2. Michèle Belot & Sjef Ederveen, 2012. "Cultural barriers in migration between OECD countries," Journal of Population Economics, Springer, vol. 25(3), pages 1077-1105, July.
  3. Riccardo Faini, 2006. "Remittances and the brain drain," Development Working Papers 214, Centro Studi Luca d\'Agliano, University of Milano.
  4. Albert Bollard & David McKenzie & Melanie Morten & Hillel Rapoport, 2011. "Remittances and the Brain Drain Revisited: The Microdata Show That More Educated Migrants Remit More," World Bank Economic Review, World Bank Group, vol. 25(1), pages 132-156, May.
  5. David McKenzie & Hillel Rapoport, 2007. "Self-selection patterns in Mexico-U.S. migration: The role of migration networks," CReAM Discussion Paper Series 0701, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
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  7. Jose De Sousa & Laetitia Duval, 2010. "Geographic Distance and Remittances in Romania: Out of Sight, Out of Mind?," Economie Internationale, CEPII research center, issue 121, pages 81-98.
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  14. Michel Beine & Frederic Docquier & Hillel Rapoport, 2006. "Measuring International Skilled Migration: New Estimates Controlling for Age of Entry," CReAM Discussion Paper Series 0613, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
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Citations

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Cited by:
  1. Ahmed, Junaid & Martinez-Zarzoso, Inmaculada, 2014. "What drives bilateral remittances to Pakistan? A gravity model approach," Center for European, Governance and Economic Development Research Discussion Papers 209, University of Goettingen, Department of Economics.
  2. Martin Kahanec, 2013. "Skilled Labor Flows: Lessons from the European Union," Research Reports 1, Central European Labour Studies Institute (CELSI).
  3. 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.
  4. Vikhrov Dmytro, 2013. "Welfare Effects of Labor Migration," CERGE-EI Working Papers wp491, The Center for Economic Research and Graduate Education - Economic Institute, Prague.
  5. Alex Julca, 2013. "Can Immigrant Remittances Support Development Finance?," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 60(3), pages 365-380, May.
  6. Bertoli, Simone & Rapoport, Hillel, 2013. "Heaven's Swing Door: Endogenous Skills, Migration Networks and the Effectiveness of Quality-Selective Immigration Policies," IZA Discussion Papers 7749, Institute for the Study of Labor (IZA).
  7. Assaf Razin & Jackline Wahba, 2012. "Welfare Magnet Hypothesis, Fiscal Burden and Immigration Skill Selectivity," Norface Discussion Paper Series 2012036, Norface Research Programme on Migration, Department of Economics, University College London.
  8. 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).
  9. 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).
  10. Bettin, Giulia & Presbitero, Andrea F. & Spatafora, Nikola, 2014. "Remittances and vulnerability in developing countries," Policy Research Working Paper Series 6812, The World Bank.

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