IDEAS home Printed from https://ideas.repec.org/a/eee/asieco/v30y2014icp54-62.html
   My bibliography  Save this article

Financial literacy and remittance behavior of skilled and unskilled immigrant groups in Australia

Author

Listed:
  • Karunarathne, Wasana
  • Gibson, John

Abstract

Studies of financial literacy show that many people are poorly prepared for making major financial decisions. One important sub-group rarely examined by financial literacy studies is immigrants, who have specialized financial needs related to remittances. This paper examines variation in financial literacy amongst two actively remitting immigrant groups in Australia – Sri Lankans and Samoans – using surveys designed and supervised by the authors. Paying attention to remittance-related and credit-related literacy, large gaps in the level of financial literacy of the two groups are shown, which are due especially to differences in educational attainment. The wide variation in transactions costs of various remittance channels suggest that many immigrants could save several hundred dollars per year if improved financial literacy helped to produce more efficient remittance choices.

Suggested Citation

  • Karunarathne, Wasana & Gibson, John, 2014. "Financial literacy and remittance behavior of skilled and unskilled immigrant groups in Australia," Journal of Asian Economics, Elsevier, vol. 30(C), pages 54-62.
  • Handle: RePEc:eee:asieco:v:30:y:2014:i:c:p:54-62
    DOI: 10.1016/j.asieco.2013.12.004
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1049007813001164
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Anna Paulson & Sherrie Rhine, 2008. "The Financial Assimilation of an Immigrant Group: Evidence on the Use of Checking and Savings Accounts and Currency Exchanges," Journal of Family and Economic Issues, Springer, vol. 29(2), pages 264-278, June.
    2. John Gibson & David McKenzie & Halahingano Rohorua, 2006. "How Cost Elastic are Remittances? Estimates from Tongan Migrants in New Zealand," Working Papers in Economics 06/02, University of Waikato.
    3. Annamarie Lusardi & Olivia S. Mitchell, 2005. "Financial Literacy and Planning: Implications for Retirement Wellbeing," Working Papers wp108, University of Michigan, Michigan Retirement Research Center.
    4. Mathia Sinning & Markus Hahn & Thomas K. Bauer, 2008. "The Blinder–Oaxaca decomposition for nonlinear regression models," Stata Journal, StataCorp LP, vol. 8(4), pages 480-492, December.
    5. Diana J. Beal & Sarath B. Delpachitra, 2003. "Financial Literacy Among Australian University Students," Economic Papers, The Economic Society of Australia, vol. 22(1), pages 65-78, March.
    6. Karunarathne, Wasana & Gibson, John, 2014. "Financial literacy and remittance behavior of skilled and unskilled immigrant groups in Australia," Journal of Asian Economics, Elsevier, vol. 30(C), pages 54-62.
    7. John Gibson & David McKenzie & Bilal Zia, 2014. "The Impact of Financial Literacy Training for Migrants," World Bank Economic Review, World Bank Group, vol. 28(1), pages 130-161.
    8. Carpena, Fenella & Cole, Shawn & Shapiro, Jeremy & Zia, Bilal, 2011. "Unpacking the causal chain of financial literacy," Policy Research Working Paper Series 5798, The World Bank.
    9. David J. McKenzie & Johan Mistiaen, 2009. "Surveying migrant households: a comparison of census-based, snowball and intercept point surveys," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 172(2), pages 339-360.
    10. John Gibson & Geua Boe-Gibson & Halahingano Rohorua & David McKenzie, 2007. "Efficient remittance services for development in the Pacific," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 14(2), pages 55-74, December.
    11. David Neumark, 1988. "Employers' Discriminatory Behavior and the Estimation of Wage Discrimination," Journal of Human Resources, University of Wisconsin Press, vol. 23(3), pages 279-295.
    12. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Anwar, Sajid & Cooray, Arusha, 2015. "Financial flows and per capita income in developing countries," International Review of Economics & Finance, Elsevier, vol. 35(C), pages 304-314.
    2. Karunarathne, Wasana & Gibson, John, 2014. "Financial literacy and remittance behavior of skilled and unskilled immigrant groups in Australia," Journal of Asian Economics, Elsevier, vol. 30(C), pages 54-62.
    3. repec:eee:pacfin:v:43:y:2017:i:c:p:218-237 is not listed on IDEAS
    4. Shen, Chung-Hua & Lin, Shih-Jie & Tang, De-Piao & Hsiao, Yu-Jen, 2016. "The relationship between financial disputes and financial literacy," Pacific-Basin Finance Journal, Elsevier, vol. 36(C), pages 46-65.

    More about this item

    Keywords

    Financial literacy; Immigrants; Remittances; Transaction costs; Australia;

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:asieco:v:30:y:2014:i:c:p:54-62. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/asieco .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.