Insurance motives to remit: Evidence from a matched sample of Ethiopian internal migrants
AbstractMigration and remittances can be used by rural households as a means of insurance, investment, and income augmentation. Ample attention has been given to studying international remittance flows, since for many countries such transfers comprise a significant fraction of income. Remittance flows from internal migrants are relatively understudied, particularly in Africa, where remittance rates are poor. We use a unique matched migrant sample to study what drives the low remittance rates in Ethiopia. Descriptive statistics suggest remitters are positively selected in terms of wealth characteristics compared with the average tracked migrant. Limited skill transferability and liquidity largely explain low remittance rates in Ethiopia. Weaker evidence suggests migrants are additionally motivated to remit as a form of self-insurance against own shocks to income and investments towards future inheritable assets.
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Bibliographic InfoPaper provided by International Food Policy Research Institute (IFPRI) in its series IFPRI discussion papers with number 1090.
Date of creation: 2011
Date of revision:
Insurance; Migration; Remittances;
This paper has been announced in the following NEP Reports:
- NEP-AFR-2011-08-02 (Africa)
- NEP-ALL-2011-08-02 (All new papers)
- NEP-DEV-2011-08-02 (Development)
- NEP-IAS-2011-08-02 (Insurance Economics)
- NEP-MIG-2011-08-02 (Economics of Human Migration)
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