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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

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

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  1. 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. [Downloadable!] (restricted)
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  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. [Downloadable!] (restricted)
  3. Cox, Donald, 1987. "Motives for Private Income Transfers," Journal of Political Economy, University of Chicago Press, vol. 95(3), pages 508-46, June. [Downloadable!] (restricted)
  4. 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. [Downloadable!] (restricted)
  5. 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.
  6. Hayashi, Fumio & Altonji, Joseph & Kotlikoff, Laurence, 1996. "Risk-Sharing between and within Families," Econometrica, Econometric Society, vol. 64(2), pages 261-94, March. [Downloadable!] (restricted)
  7. 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.
  8. Hoddinott, John, 1992. "Modelling Remittance Flows in Kenya," Journal of African Economies, Oxford University Press, vol. 1(2), pages 206-32, August.
  9. 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.
  10. Lambert, S., 1993. "Migration as a Risk-Sharing Decision: Evidence from Cote d'Ivoire," DELTA Working Papers 93-01, DELTA (Ecole normale supérieure).
  11. 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. [Downloadable!] (restricted)
  12. Altonji, Joseph G & Hayashi, Fumio & Kotlikoff, Laurence J, 1992. "Is the Extended Family Altruistically Linked? Direct Tests Using Micro Data," American Economic Review, American Economic Association, vol. 82(5), pages 1177-98, December. [Downloadable!] (restricted)
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  13. Cox, Donald, 1990. "Intergenerational Transfers and Liquidity Constraints," The Quarterly Journal of Economics, MIT Press, vol. 105(1), pages 187-217, February. [Downloadable!] (restricted)
  14. 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. [Downloadable!] (restricted)
  15. Ligon, Ethan, 1995. "Altruism and markets," CUDARE Working Paper Series 758, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy. [Downloadable!]
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