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Remittances as a Social Status Signaling Device

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Author Info

  • Naiditch, Claire

    ()
    (CES-Matisse University Paris 1)

  • Vranceanu, Radu

    ()
    (ESSEC Business School)

Abstract

Like all human beings, migrants may have a concern about their prestige or social status in the eyes of left home family and friends. They can remit money in order to signal their economic success and increase their status. We show that, if migrants' income is private information, unsuccessful migrants might accept a worsening of their living conditions and send back home large amounts of remittances only in order to make residents believe that they are successful. In some cases, successful migrants can signal their true favorable economic situation by remitting an even larger amount.

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Bibliographic Info

Paper provided by ESSEC Research Center, ESSEC Business School in its series ESSEC Working Papers with number DR 09015.

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Length: 25 pages
Date of creation: Dec 2009
Date of revision:
Handle: RePEc:ebg:essewp:dr-09015

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Postal: ESSEC Research Center, BP 105, 95021 Cergy, France
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Web page: http://www.essec.edu/
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Keywords: Imperfect Information; Poverty; Remittances; Signaling;

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References

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Cited by:
  1. Gaël Giraud & Cécile Renouard, 2010. "Is the veil of ignorance transparent ?," Documents de travail du Centre d'Economie de la Sorbonne 10011, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.

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