We estimate a multinomial logit model to explain the choice of transfer channel (formal services vs. informal operators or personal transfers) by 1139 pairs of migrants and recipients of remittances in Moldova in 2006. Explanatory variables include socioeconomic characteristics of the migrant and other household members, the pattern of migration (destination country, legal status, duration) and financial information (average amount and frequency of payments). Key reasons not to use a formal transfer channel include an emphasis on low transfer cost (rather than speed, convenience, or security), a migrant’s irregular legal status in the host country, and short migration spells
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Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number
1515.
Find related papers by JEL classification: F22 - International Economics - - International Factor Movements and International Business - - - International Migration F24 - International Economics - - International Factor Movements and International Business - - - Remittances O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment
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