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Migration and Money - What determines Remittances? Evidence from Germany

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Author Info
Elke Holst
Mechthild Schrooten

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Abstract

The determinants of migrants' remittances are the subject of this study based on German SOEP data. For our analysis of the probability and amount of remittances, we do not restrict ourselves on immigrants with a foreign citizenship, but focus on all individuals with a migration background. Major findings are: first, the degree of integration into German society matters. Second, the probability to remit is not dominated by income. Third, foreigners living in Germany are not a homogenous group concerning their remittance behavior: people with Turkish and former Yugoslavian citizenship, who are facing a comparable strong pressure for return migration, remit significantly more than others. The study points to potentially interesting directions for future research: (a) deeper investigations of the extent to which the legal status of the migrant influences cross-border transfer behavior and (b) reconsidering the theoretical arguments since the motive for remittances might have changed during the ongoing globalization process.

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Paper provided by Institute of Economic Research, Hitotsubashi University in its series Discussion Paper Series with number a477.

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Date of creation: Mar 2006
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Handle: RePEc:hit:hituec:a477

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Related research
Keywords: remittances international migration altruism

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Find related papers by JEL classification:
J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers
F22 - International Economics - - International Factor Movements and International Business - - - International Migration
D64 - Microeconomics - - Welfare Economics - - - Altruism

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  1. Poirine, Bernard, 1997. "A theory of remittances as an implicit family loan arrangement," World Development, Elsevier, vol. 25(4), pages 589-611, January. [Downloadable!] (restricted)
  2. Merkle, Lucie & Zimmermann, Klaus F., 1992. "Savings, remittances, and return migration," Economics Letters, Elsevier, vol. 38(1), pages 77-81, January. [Downloadable!] (restricted)
  3. Stark, Oded & Wang, You Qiang, 2002. "Migration dynamics," Economics Letters, Elsevier, vol. 76(2), pages 159-164, July. [Downloadable!] (restricted)
  4. Rapoport, Hillel & Docquier, Frédéric, 2005. "The Economics of Migrants’ Remittances," IZA Discussion Papers 1531, Institute for the Study of Labor (IZA). [Downloadable!]
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  5. Rosenzweig, Mark R, 1988. "Risk, Private Information, and the Family," American Economic Review, American Economic Association, vol. 78(2), pages 245-50, May. [Downloadable!] (restricted)
  6. Fehr, Ernst & Fischbacher, Urs & von Rosenbladt, Bernhard & Schupp, Jürgen & Wagner, Gert G., 2003. "A Nation-Wide Laboratory: Examining Trust and Trustworthiness by Integrating Behavioral Experiments into Representative Surveys," IZA Discussion Papers 715, Institute for the Study of Labor (IZA). [Downloadable!]
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  7. Mariano Sana & Douglas S. Massey, 2005. "Household Composition, Family Migration, and Community Context: Migrant Remittances in Four Countries," Social Science Quarterly, The Southwestern Social Science Association, vol. 86(2), pages 509-528. [Downloadable!] (restricted)
  8. Stark, Oded & Wang, You Qiang, 2002. "Migration Dynamics," Economics Series 112, Institute for Advanced Studies. [Downloadable!]
  9. 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)
  10. Elke Holst & Dean R. Lillard & Thomas A. DiPrete, 2001. "Proceedings of the 2000 Fourth International Conference of German Socio-Economic Panel Study Users (GSOEP 2000) : Editorial Introduction," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 70(1), pages 5-6. [Downloadable!] (restricted)
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