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Why do migrants remit?

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Author Info

  • de la Briere, Benedicte
  • de Janvry, Alain
  • Lambert, Sylvie
  • Sadoulet, Elisabeth

Abstract

Two contrasting hypotheses about what motivates Dominican migrants to send remittances to their rural parents in the Sierra are tested: (1) an investment in potential bequests and (2) an insurance contract between parents and migrant children. Remittances from young migrants, males, and migrants who want to return to the Sierra follow a pattern consistent with investment. In contrast, female migrants with no intention of returning to the Sierra play the role of insurers. The gender composition of the migrant siblings affects this remittance task-sharing, since women with no remitting brothers show interest in inheritance, while men with no sisters offer insurance.

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Bibliographic Info

Paper provided by International Food Policy Research Institute (IFPRI) in its series FCND discussion papers with number 37.

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Date of creation: 1997
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Handle: RePEc:fpr:fcnddp:37

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Related research

Keywords: Gender ; Migrant remittances Developing countries. ; Gender issues. ; Investments Social aspects. ; Family Economic aspects. ; Household resource allocation ;

References

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  1. Richard Smith & Richard Blundell, 1983. "An Exogeneity Test for the Simultaneous Equation Tobit Model With an Application to Labour Supply," Working Papers 546, Queen's University, Department of Economics.
  2. Hoddinott, John, 1994. "A Model of Migration and Remittances Applied to Western Kenya," Oxford Economic Papers, Oxford University Press, vol. 46(3), pages 459-76, July.
  3. de Janvry, Alain & Fafchamps, Marcel & Sadoulet, Elisabeth, 1991. "Peasant Household Behaviour with Missing Markets: Some Paradoxes Explained," Economic Journal, Royal Economic Society, vol. 101(409), pages 1400-417, November.
  4. Cox, Donald, 1990. "Intergenerational Transfers and Liquidity Constraints," The Quarterly Journal of Economics, MIT Press, vol. 105(1), pages 187-217, February.
  5. Smith, Richard J & Blundell, Richard W, 1986. "An Exogeneity Test for a Simultaneous Equation Tobit Model with an Application to Labor Supply," Econometrica, Econometric Society, vol. 54(3), pages 679-85, May.
  6. Funkhouser, Edward, 1995. "Remittances from International Migration: A Comparison of El Salvador and Nicaragua," The Review of Economics and Statistics, MIT Press, vol. 77(1), pages 137-46, February.
  7. Bernheim, B Douglas & Shleifer, Andrei & Summers, Lawrence H, 1985. "The Strategic Bequest Motive," Journal of Political Economy, University of Chicago Press, vol. 93(6), pages 1045-76, December.
  8. Knowles, James C. & Anker, Richard, 1981. "An analysis of income transfers in a developing country : The case of Kenya," Journal of Development Economics, Elsevier, vol. 8(2), pages 205-226, April.
  9. Joseph G. Altonji & Fumio Hayashi & Laurence J. Kotlikoff, 1989. "Is the Extended Family Altruistically Linked? Direct Tests Using Micro Data," NBER Working Papers 3046, National Bureau of Economic Research, Inc.
  10. Veall, Michael R & Zimmermann, Klaus F, 1994. "Goodness of Fit Measures in the Tobit Model," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 56(4), pages 485-99, November.
  11. Hayashi, Fumio & Altonji, Joseph & Kotlikoff, Laurence, 1996. "Risk-Sharing between and within Families," Econometrica, Econometric Society, vol. 64(2), pages 261-94, March.
  12. Hoddinott, John, 1992. "Modelling Remittance Flows in Kenya," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 1(2), pages 206-32, August.
  13. Lucas, Robert E B & Stark, Oded, 1985. "Motivations to Remit: Evidence from Botswana," Journal of Political Economy, University of Chicago Press, vol. 93(5), pages 901-18, October.
  14. Cox, Donald, 1987. "Motives for Private Income Transfers," Journal of Political Economy, University of Chicago Press, vol. 95(3), pages 508-46, June.
  15. Cox, Donald C & Jimenez, Emmanuel, 1992. "Social Security and Private Transfers in Developing Countries: The Case of Peru," World Bank Economic Review, World Bank Group, vol. 6(1), pages 155-69, January.
  16. Stark, Oded & Levhari, David, 1982. "On Migration and Risk in LDCs," Economic Development and Cultural Change, University of Chicago Press, vol. 31(1), pages 191-96, October.
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Citations

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Cited by:
  1. Jamal BOUOIYOUR & Amal MIFTAH, 2012. "Le retour des migrants marocains dans leur pays d'origine, quand ? Dans quelles circonstances ?," Working Papers 2012-2013_1, CATT - UPPA - Université de Pau et des Pays de l'Adour, revised Aug 2012.
  2. Assaad, Ragu & El-Hamidi, Fatma & Ahmed, Akhter U., 2000. "The determinants of employment status in Egypt," FCND briefs 88, International Food Policy Research Institute (IFPRI).
  3. Morduch, Jonathan & Sharma, Manohar, 2001. "Strengthening public safety nets," FCND discussion papers 122, International Food Policy Research Institute (IFPRI).
  4. Mariapia Mendola, 2004. "Migration and Technological Change in Rural Households: Complements or Substitutes?," Development Working Papers 195, Centro Studi Luca d\'Agliano, University of Milano.
  5. Katarzyna Budnik, 2011. "Temporary migration in theories of international mobility of labour," Bank i Kredyt, National Bank of Poland, Economic Institute, vol. 42(6), pages 7-48.
  6. Mendola, Mariapia, 2008. "Migration and technological change in rural households: Complements or substitutes?," Journal of Development Economics, Elsevier, vol. 85(1-2), pages 150-175, February.

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