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The check is in the mail: Household characteristics and migrant remittance from the U.S. to Mexico

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Author Info
Jonathan Yoder
Adam McCoy
Mudziviri Nziramasanga () (School of Economic Sciences, Washington State University)

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Abstract

We develop a household model of migrant remittance that accounts for the effects of subsistence requirements and transaction costs on remittances. The model supports testable hypotheses about the effect on remittances of migrant income, family composition and distribution, transaction costs, income and residence security, and other household characteristics on remittance levels and frequency. We test these hypotheses using survey data on individual Mexican migrants in the United States. The results are broadly consistent with our hypotheses. For example, our subsistence requirement implies that below a threshold, the income effect on remittance is zero. This is borne out in our results.

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File URL: http://www.ses.wsu.edu/PDFFiles/WorkingPapers/Yoder/McCoyNZiramasangaYoder2008_Remittances.pdf
File Format: application/pdf
File Function: First version, 2008
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Publisher Info
Paper provided by School of Economic Sciences, Washington State University in its series Working Papers with number 2008-1.

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Length: 41 pages
Date of creation: 2008
Date of revision:
Handle: RePEc:wsu:wpaper:nziramasanga-1

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Related research
Keywords: remittances; migrant income; transaction costs;

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Find related papers by JEL classification:
J1 - Labor and Demographic Economics - - Demographic Economics
J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers
C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models

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  1. Alexandra Cox Edwards & Manuelita Ureta, 2003. "International Migration, Remittances, and Schooling: Evidence from El Salvador," NBER Working Papers 9766, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. Catalina Amuedo-Dorantes & Cynthis Bansak & Susan Pozo, 2005. "On the remitting patterns of immigrants: evidence from Mexican survey data," Economic Review, Federal Reserve Bank of Atlanta, issue Q 1, pages 37-58. [Downloadable!]
  3. Qiming Liu & Barry Reilly, 2004. "Income transfers of Chinese rural migrants: some empirical evidence from Jinan," Applied Economics, Taylor and Francis Journals, vol. 36(12), pages 1295-1313, July. [Downloadable!] (restricted)
  4. Richard Williams, 2006. "Generalized ordered logit/partial proportional odds models for ordinal dependent variables," Stata Journal, StataCorp LP, vol. 6(1), pages 58-82, March. [Downloadable!]
  5. Jacques Bouhga-Hagbe, 2004. "A Theory of Workers' Remittances With An Application to Morocco," IMF Working Papers 04/194, International Monetary Fund. [Downloadable!]
  6. 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. [Downloadable!] (restricted)
  7. Edwards, Alejandra Cox & Ureta, Manuelita, 2003. "International migration, remittances, and schooling: evidence from El Salvador," Journal of Development Economics, Elsevier, vol. 72(2), pages 429-461, December. [Downloadable!] (restricted)
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This page was last updated on 2009-11-23.

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