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Remittances and Return Migration

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Author Info

  • Collier, William

    ()
    (University of Kent)

  • Piracha, Matloob

    ()
    (University of Kent)

  • Randazzo, Teresa

    ()
    (University of Kent)

Abstract

This paper utilises survey data of return migrants to analyse the determinants of remittances sent while the migrants were abroad. We approach our research question from the perspective of three sending countries in the Maghreb, namely Algeria, Morocco and Tunisia. We investigate the remittance behaviour using the migrants’ conditions before migration as well as during the migration experience. Using a two-part model, we show that the decision to remit and the amount remitted depend on a combination of different migrant characteristics as well as the duration and form of migration. We also consider if the remittance behaviour is dependent on the type of return: decided or compelled. We show that those who decided to return have a higher probability to remit for investment purposes and remit more as the time spent abroad increases.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6091.

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Length: 31 pages
Date of creation: Oct 2011
Date of revision:
Handle: RePEc:iza:izadps:dp6091

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Keywords: remittances; return migration; Maghreb countries;

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References

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  1. Piracha, Matloob & Zhu, Yu, 2007. "Precautionary Savings by Natives and Immigrants in Germany," IZA Discussion Papers 2942, Institute for the Study of Labor (IZA).
  2. Yoko NIIMI & Caglar OZDEN & Maurice SCHIFF, 2010. "Remittances and the Brain Drain: Skilled Migrants Do Remit Less," Annales d'Economie et de Statistique, ENSAE, issue 97-98, pages 123-141.
  3. Catalina Amuedo-Dorantes & Susan Pozo, 2006. "Remittances as insurance: evidence from Mexican immigrants," Journal of Population Economics, Springer, vol. 19(2), pages 227-254, June.
  4. Docquier, Frédéric & Lowell, B. Lindsay & Marfouk, Abdeslam, 2007. "A Gendered Assessment of the Brain Drain," IZA Discussion Papers 3235, Institute for the Study of Labor (IZA).
  5. 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.
  6. Rapoport, Hillel & Docquier, Frédéric, 2005. "The Economics of Migrants’ Remittances," IZA Discussion Papers 1531, Institute for the Study of Labor (IZA).
  7. Dustmann, Christian & Mestres, Josep, 2010. "Remittances and temporary migration," Journal of Development Economics, Elsevier, vol. 92(1), pages 62-70, May.
  8. Cox, Donald C & Jimenez, Emmanuel, 1992. "Social Security and Private Transfers in Developing Countries: The Case of Peru," World Bank Economic Review, World Bank Group, vol. 6(1), pages 155-69, January.
  9. Ken Clark & Stephen Drinkwater, 2007. "An Investigation Of Household Remittance Behaviour: Evidence From The United Kingdom," Manchester School, University of Manchester, vol. 75(6), pages 717-741, December.
  10. Faini, Riccardo, 2006. "Remittances and the Brain Drain," IZA Discussion Papers 2155, Institute for the Study of Labor (IZA).
  11. de la Briere, Benedicte & Sadoulet, Elisabeth & de Janvry, Alain & Lambert, Sylvie, 2002. "The roles of destination, gender, and household composition in explaining remittances: an analysis for the Dominican Sierra," Journal of Development Economics, Elsevier, vol. 68(2), pages 309-328, August.
  12. Alice Mesnard, 2004. "Temporary migration and capital market imperfections," Oxford Economic Papers, Oxford University Press, vol. 56(2), pages 242-262, April.
  13. 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.
  14. Matloob Piracha & Stephane Mahuteau & Massimiliano Tani, 2010. "Selection Policy and Immigrants’ Remittance Behaviour," Studies in Economics 1003, Department of Economics, University of Kent.
  15. Mark B. Stewart, 1982. "On Least Squares Estimation When the Dependent Variable is Grouped," Working Papers 539, Princeton University, Department of Economics, Industrial Relations Section..
  16. Agarwal, Reena & Horowitz, Andrew W., 2002. "Are International Remittances Altruism or Insurance? Evidence from Guyana Using Multiple-Migrant Households," World Development, Elsevier, vol. 30(11), pages 2033-2044, November.
  17. Luis Miotti & El Mouhoub Mouhoud & Joel Oudinet, 2009. "Migrations And Determinants Of Remittances To Southern Mediterranean Countries: When History Matters !," Post-Print hal-00483303, HAL.
  18. Brown, Richard P. C., 1997. "Estimating remittance functions for Pacific Island Migrants," World Development, Elsevier, vol. 25(4), pages 613-626, January.
  19. Poirine, Bernard, 1997. "A theory of remittances as an implicit family loan arrangement," World Development, Elsevier, vol. 25(4), pages 589-611, January.
  20. Nicholas P. Glytsos, 1997. "Remitting Behaviour of "Temporary" and "Permanent" Migrants: The Case of Greeks in Germany and Australia," LABOUR, CEIS, vol. 11(3), pages 409-435, November.
  21. Hendrik P. van Dalen & George Groenewold & Tineke Fokkema, 2005. "Remittances and their Effect on Emigration Intentions in Egypt, Morocco and Turkey," Tinbergen Institute Discussion Papers 05-030/1, Tinbergen Institute.
  22. 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.
  23. 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.
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Cited by:
  1. Fatma MABROUK, 2013. "À la recherche d’une typologie des migrants de retour : le cas des pays du Maghreb," Cahiers du GREThA 2013-06, Groupe de Recherche en Economie Théorique et Appliquée.

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