Remittances and the Brain Drain Revisited: The Microdata Show That More Educated Migrants Remit More
AbstractTwo of the most salient trends surrounding the issue of migration and development over the last two decades are the large rise in remittances, and an increased flow of skilled migration. However, recent literature based on cross-country regressions has claimed that more educated migrants remit less, leading to concerns that further increases in skilled migration will hamper remittance growth. We revisit the relationship between education and remitting behavior using microdata from surveys of immigrants in eleven major destination countries. The data show a mixed pattern between education and the likelihood of remitting, and a strong positive relationship between education and the amount remitted conditional on remitting. Combining these intensive and extensive margins gives an overall positive effect of education on the amount remitted. The microdata then allow investigation as to why the more educated remit more. We find the higher income earned by migrants, rather than characteristics of their family situations explains much of the higher remittances.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4534.
Length: 37 pages
Date of creation: Oct 2009
Date of revision:
Publication status: published in: World Bank Economic Review, 2011, 25 (1), 132 - 156
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Other versions of this item:
- Albert Bollard & David McKenzie & Melanie Morten & Hillel Rapoport, 2011. "Remittances and the Brain Drain Revisited: The Microdata Show That More Educated Migrants Remit More," World Bank Economic Review, World Bank Group, vol. 25(1), pages 132-156, May.
- Albert Bollard & David McKenzie & Melanie Morten & Hillel Rapoport, 2009. "Remittances and the Brain Drain Revisited: The microdata show that more educated migrants remit more," CReAM Discussion Paper Series 0926, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
- Bollard, Albert & McKenzie, David & Morten, Melanie & Rapoport, Hillel, 2009. "Remittances and the brain drain revisited : the microdata show that more educated migrants remit more," Policy Research Working Paper Series 5113, The World Bank.
- Albert Bollard & David McKenzie & Melanie Morten & Hillel Rapoport, 2009. "Remittances and the Brain Drain Revisited: The Microdata Show That More Educated Migrants Remit More," Working Papers 2009-26, Department of Economics, Bar-Ilan University.
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-11-14 (All new papers)
- NEP-DEV-2009-11-14 (Development)
- NEP-LAB-2009-11-14 (Labour Economics)
- NEP-MIG-2009-11-14 (Economics of Human Migration)
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