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The Link between International Remittances and Private Interhousehold Transfers

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  • Beyene, Berhe Mekonnen

    (Dept. of Economics, University of Oslo)

Abstract

The paper studies the link between international remittances and interhousehold transfers. Using a simple insurance model, it is shown that households transfer a large fraction of the remittance they receive from relatives abroad to other households. The effect of remittances on interhousehold transfers is empirically investigated using an urban household survey from Ethiopia. Consistent with the prediction of the model, remittance has a strong positive effect on the amount of transfer given, controlling for total household income and other covariates.

Suggested Citation

  • Beyene, Berhe Mekonnen, 2012. "The Link between International Remittances and Private Interhousehold Transfers," Memorandum 14/2012, Oslo University, Department of Economics.
    • Handle: RePEc:hhs:osloec:2012_014
    as

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    File URL: https://www.sv.uio.no/econ/english/research/unpublished-works/working-papers/pdf-files/2012/Memo-14-2012.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. Yonas Alem & Lisa Andersson, 2019. "International Remittances and Private Interhousehold Transfers: Exploring the Links," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 31(4), pages 902-928, September.

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    More about this item

    Keywords

    international remittances; interhousehold transfers; mutual insurance; Ethiopia;
    All these keywords.

    JEL classification:

    • D19 - Microeconomics - - Household Behavior - - - Other
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General

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