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The Remitting Patterns of African Migrants in the OECD

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  • Albert Bollard

    (Stanford University)

  • David McKenzie

    ()
    (Development Research Group, World Bank)

  • Melanie Morten

    (Yale University)

Abstract

Recorded remittances to Africa have grown dramatically over the past decade. Yet data limitations still mean relatively little is known about which migrants remit, how much they remit, and how their remitting behavior varies with gender, education, income levels, and duration abroad. We construct the most comprehensive remittance database on immigrants in the OECD currently available, containing microdata on over 12,000 African immigrants. Using this microdata we establish several basic facts about remitting patterns of Africans, and then explore how key characteristics of policy interest relate to remittance behavior. Africans are found to remit twice as much on average as migrants from other developing countries, while those from poorer African countries are more likely to remit than those from richer African countries. We find male migrants remit more than female migrants, particularly among those with a spouse remaining in the home country; that more educated migrants remit more than less educated migrants; and that while the amount remitted increases with income earned, the gradient is quite flat over a large range of income. Finally, we find little evidence that the amount remitted decays with time spent abroad, with reductions in the likelihood in remitting offset by increases in the amount remitted conditional on remitting.

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Bibliographic Info

Paper provided by Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London in its series CReAM Discussion Paper Series with number 0921.

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Date of creation: Sep 2009
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Handle: RePEc:crm:wpaper:0921

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Keywords: Remittances; Migration; Africa;

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References

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  1. Osili, Una Okonkwo, 2007. "Remittances and savings from international migration: Theory and evidence using a matched sample," Journal of Development Economics, Elsevier, Elsevier, vol. 83(2), pages 446-465, July.
  2. Bollard, Albert & McKenzie, David & Morten, Melanie & Rapoport, Hillel, 2009. "Remittances and the Brain Drain Revisited: The Microdata Show That More Educated Migrants Remit More," IZA Discussion Papers 4534, Institute for the Study of Labor (IZA).
  3. Sanjeev Gupta & Catherine A. Pattillo & Smita Wagh, 2007. "Impact of Remittanceson Poverty and Financial Development in Sub-Saharan Africa," IMF Working Papers, International Monetary Fund 07/38, International Monetary Fund.
  4. Azam, Jean-Paul & Gubert, Flore, 2006. "Migrants' Remittances and the Household in Africa: A Review of Evidence," Economics Papers from University Paris Dauphine, Paris Dauphine University 123456789/5126, Paris Dauphine University.
  5. Roubaud, François & Gubert, Flore & de Vreyer, Philippe, 2009. "Migration, self selection and returns to education in the WAEMU," Economics Papers from University Paris Dauphine, Paris Dauphine University 123456789/627, Paris Dauphine University.
  6. Luis Miotti & El Mouhoub Mouhoud & Joel Oudinet, 2009. "Migrations And Determinants Of Remittances To Southern Mediterranean Countries: When History Matters !," Post-Print, HAL hal-00483303, HAL.
  7. Dilip Ratha & Sanket Mohapatra & Ani Silwal, 2009. "Outlook for Remittance Flows 2009-2011 : Remittances Expected to Fall by 7-10 Percent in 2009," World Bank Other Operational Studies 10975, The World Bank.
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Does gender matter in migration? Why I don’t believe any studies which claim it does
    by David McKenzie in Development Impact on 2013-02-18 22:14:03
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Cited by:
  1. Gibson, John & McKenzie, David, 2010. "The economic consequences of"brain drain"of the best and brightest: microeconomic evidence from five countries," Policy Research Working Paper Series, The World Bank 5394, The World Bank.
  2. de Brauw, Alan & Mueller, Valerie & Woldehanna, Tassew, 2013. "Motives to Remit: Evidence from Tracked Internal Migrants in Ethiopia," World Development, Elsevier, Elsevier, vol. 50(C), pages 13-23.
  3. Naudé, Wim & Bezuidenhout, Henri, 2012. "Remittances provide resilience against disasters in Africa," MERIT Working Papers, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT) 026, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  4. Ainhoa Aparicio, 2011. "Network Effects on Migrants' Remittances," Carlo Alberto Notebooks, Collegio Carlo Alberto 202, Collegio Carlo Alberto.
  5. de Brauw, Alan & Mueller, Valerie & Woldehanna, Tassew, 2011. "Insurance motives to remit: Evidence from a matched sample of Ethiopian internal migrants," ESSP working papers, International Food Policy Research Institute (IFPRI) 25, International Food Policy Research Institute (IFPRI).
  6. Bettin, Giulia & Lucchetti, Riccardo & Zazzaro, Alberto, 2009. "Income, consumption and remittances: Evidence from immigrants to Australia," HWWI Research Papers, Hamburg Institute of International Economics (HWWI) 3-21, Hamburg Institute of International Economics (HWWI).
  7. Wim Naudé & Henri Bezuidenhout, 2014. "Migrant Remittances Provide Resilience Against Disasters in Africa," Atlantic Economic Journal, International Atlantic Economic Society, International Atlantic Economic Society, vol. 42(1), pages 79-90, March.
  8. Bettin, Giulia & Lucchetti, Riccardo & Zazzaro, Alberto, 2012. "Endogeneity and sample selection in a model for remittances," Journal of Development Economics, Elsevier, Elsevier, vol. 99(2), pages 370-384.
  9. repec:nbr:nberch:13368 is not listed on IDEAS
  10. Aísa, R. & Andaluz, J. & Larramona, G., 2011. "How does bargaining power affect remittances?," Economic Modelling, Elsevier, Elsevier, vol. 28(1-2), pages 47-54, January.
  11. Kiawu, James AF & Jones, Keithly G, 2013. "Implications of food aid and remittances for West African food import demand," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, African Association of Agricultural Economists, vol. 8(1), July.
  12. Clemens, Michael A. & McKenzie, David, 2014. "Why don't remittances appear to affect growth ?," Policy Research Working Paper Series, The World Bank 6856, The World Bank.

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