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Migrant Remittances and Information Flows: Evidence from a Field Experiment

Author

Listed:
  • Catia Batista
  • Gaia Narciso

Abstract

Do information flows matter for remittance behavior? We design and implement a randomized control trial to quantitatively assess the role of communication between migrants and their contacts abroad on the extent and value of remittance flows. In the experiment, a random sample of 1,500 migrants residing in Ireland was offered the possibility of contacting their networks outside the host country for free over a varying number of months. We find a sizable, positive impact of our intervention on the value of migrant remittances sent. Our results exclude that the remittance effect we identify is a simple substitution effect. Instead, our analysis points to this effect being a likely result of improved information via factors such as better migrant control over remittance use, enhanced trust in remittance channels due to experience sharing, or increased remittance recipients’ social pressure on migrants. JEL codes: F22, J61, O15

Suggested Citation

  • Catia Batista & Gaia Narciso, 2013. "Migrant Remittances and Information Flows: Evidence from a Field Experiment," Nova SBE Working Paper Series novafrica:wp1306, Universidade Nova de Lisboa, Nova School of Business and Economics.
    • Handle: RePEc:unl:unlfep:novafrica:wp1306
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    File URL: http://novafrica.org/wp-content/uploads/2014/01/1306.pdf
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    Citations

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    Cited by:

    1. Ambler, Kate, 2015. "Don't tell on me: Experimental evidence of asymmetric information in transnational households," Journal of Development Economics, Elsevier, vol. 113(C), pages 52-69.
    2. Catia Batista & Janis Umblijs, 2016. "Do migrants send remittances as a way of self-insurance?," Oxford Economic Papers, Oxford University Press, vol. 68(1), pages 108-130.
    3. Batista, Catia & Silverman, Dan & Yang, Dean, 2015. "Directed giving: Evidence from an inter-household transfer experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 118(C), pages 2-21.
    4. Molina Millán, Teresa, 2015. "Regional Migration, Insurance and Economic Shocks: Evidence from Nicaragua," IZA Discussion Papers 9494, Institute of Labor Economics (IZA).
    5. Marlon Seror, 2015. "Modeling and Measuring Information Asymmetry in the Context of Senegalese Migrants' Remittances," Working Papers DT/2015/23, DIAL (Développement, Institutions et Mondialisation).
    6. Meseguer, Covadonga & Lavezzolo, Sebastián & Aparicio, Javier, 2016. "Financial remittances, trans-border conversations, and the state," LSE Research Online Documents on Economics 68273, London School of Economics and Political Science, LSE Library.
    7. David McKenzie & Dean Yang, 2015. "Evidence on Policies to Increase the Development Impacts of International Migration," The World Bank Research Observer, World Bank, vol. 30(2), pages 155-192.

    More about this item

    Keywords

    information flows; international migration; migrant networks; remittances; randomized control trial;
    All these keywords.

    JEL classification:

    • 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
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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