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Remittance Behaviours Among Recent Immigrants in Canada

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  • Schellenberg, Grant
  • Houle, Rene
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    Abstract

    Remittances "the money immigrants send to family members in their country of origin" are now centre stage in development and immigrant research. Yet, in spite of this interest, research on the characteristics of remittance senders in Canada remains quite limited, in large part because of the absence of household survey data. More broadly, studies of remittance senders in Canada and elsewhere often focus on immigrants from only one or two source countries and, consequently, do not provide a broad cross-national perspective on the issue. This study addresses these gaps by using the Longitudinal Survey of Immigrants to Canada to document the incidence of remitting and the amounts remitted by immigrants from a wide range of countries. Using a common set of concepts and methods, we find that the incidence of remitting by the 2000 to 2001 landing cohort ranges from less than 10% to 60% across immigrants from different countries, while the average annual amounts remitted range from about $500 to almost $3,000. Turning to the factors associated with remitting, the financial and family characteristics are consistently significant among immigrants from all world regions. In contrast, other factors, such as gender and education, are associated with remitting among immigrants from some regions but not from others.

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    Bibliographic Info

    Paper provided by Statistics Canada, Analytical Studies Branch in its series Analytical Studies Branch Research Paper Series with number 2008312e.

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    Date of creation: 23 Jul 2008
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    Handle: RePEc:stc:stcp3e:2008312e

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    Keywords: Ethnic diversity and immigration; Household; family and personal income; Immigrants and non-permanent residents; Income; pensions; spending and wealth;

    This paper has been announced in the following NEP Reports:

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    1. Jacques Bouhga-Hagbe, 2006. "Altruism and Workers' Remittances," IMF Working Papers 06/130, International Monetary Fund.
    2. 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.
    3. Acosta, Pablo & Calderon, Cesar & Fajnzylber, Pablo & Lopez, Humberto, 2007. "What is the impact of international remittances on poverty and inequality in Latin America ?," Policy Research Working Paper Series 4249, The World Bank.
    4. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
    5. Morissette, Rene & Frenette, Marc, 2003. "Will They Ever Converge? Earnings of Immigrants and Canadian-born Workers over the Last Two Decades," Analytical Studies Branch Research Paper Series 2003215e, Statistics Canada, Analytical Studies Branch.
    6. Hou, Feng & Picot, Garnett & Coulombe, Simon, 2007. "Chronic Low Income and Low-income Dynamics Among Recent Immigrants," Analytical Studies Branch Research Paper Series 2007294e, Statistics Canada, Analytical Studies Branch.
    7. Stark, Oded & Lucas, Robert E B, 1988. "Migration, Remittances, and the Family," Economic Development and Cultural Change, University of Chicago Press, vol. 36(3), pages 465-81, April.
    8. El-Sakka, M. I. T. & McNabb, Robert, 1999. "The Macroeconomic Determinants of Emigrant Remittances," World Development, Elsevier, vol. 27(8), pages 1493-1502, August.
    9. Adams, Richard H. Jr., 2007. "International remittances and the household : analysis and review of global evidence," Policy Research Working Paper Series 4116, The World Bank.
    10. McLeod, Logan & Heisz, Andrew, 2004. "Low-income in Census Metropolitan Areas, 1980-2000," Trends and Conditions in Census Metropolitan Areas 2004001e, Statistics Canada, Social Analysis and Modelling.
    11. Serdar Sayan, 2006. "Business Cycles and Workers' Remittances," IMF Working Papers 06/52, International Monetary Fund.
    12. Leah Vanwey, 2004. "Altruistic and contractual remittances between male and female migrants and households in rural Thailand," Demography, Springer, vol. 41(4), pages 739-756, November.
    13. Poonam Gupta, 2005. "Macroeconomic Determinants of Remittances," IMF Working Papers 05/224, International Monetary Fund.
    14. Freund, Caroline & Spatafora, Nikola, 2005. "Remittances : transaction costs, determinants, and informal flows," Policy Research Working Paper Series 3704, The World Bank.
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