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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)

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://faculty.ses.wsu.edu/WorkingPapers/Yoder/McCoyNZiramasangaYoder2008_Remittances.pdf
File Function: First version, 2008
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Bibliographic 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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Keywords: remittances; migrant income; transaction costs;

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References

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  1. Jacques Bouhga-Hagbe, 2004. "A Theory of Workers' Remittances with An Application to Morocco," IMF Working Papers 04/194, International Monetary Fund.
  2. Nicholas Glytsos, 2005. "A Model of Remittance Determination Applied to Middle East and North Africa Countries," Labor and Demography 0505016, EconWPA.
  3. Richard H. Adams, 2006. "International Remittances and the Household: Analysis and Review of Global Evidence," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 15(2), pages 396-425, December.
  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.
  5. 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.
  6. 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.
  7. 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.
  8. Poirine, Bernard, 1997. "A theory of remittances as an implicit family loan arrangement," World Development, Elsevier, vol. 25(4), pages 589-611, January.
  9. Magee, Gary B. & Thompson, Andrew S., 2006. "The Global and Local: Explaining Migrant Remittance Flows in the English-Speaking World, 1880 1914," The Journal of Economic History, Cambridge University Press, vol. 66(01), pages 177-202, March.
  10. Acosta, Pablo, 2006. "Labor supply, school attendance, and remittances from international migration : the case of El Salvador," Policy Research Working Paper Series 3903, The World Bank.
  11. Alejandra Cox Edwards & Manuelita Ureta, 2003. "International Migration, Remittances, and Schooling: Evidence from El Salvador," NBER Working Papers 9766, National Bureau of Economic Research, Inc.
  12. Stark,Oded, 1999. "Altruism and Beyond," Cambridge Books, Cambridge University Press, number 9780521663731.
  13. Qiming Liu & Barry Reilly, 2004. "Income transfers of Chinese rural migrants: some empirical evidence from Jinan," Applied Economics, Taylor & Francis Journals, vol. 36(12), pages 1295-1313.
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