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How does bargaining power affect remittances?

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  • Aísa, R.
  • Andaluz, J.
  • Larramona, G.

Abstract

This paper examines the factors affecting the amount of remittances by migrants to their home countries, in a context of a family bargaining model. Spanish data does not show the same clear relationship between remittances and migrant income that is captured in the theoretical literature and certain empirical papers. Family bargaining models emerge as a useful framework within which to study remittances, and bargaining power is a key element in determining the level of such remittances. As a consequence of the consideration of bargaining power, the effect of income levels on remittances emerges as non-monotonic.

Suggested Citation

  • Aísa, R. & Andaluz, J. & Larramona, G., 2011. "How does bargaining power affect remittances?," Economic Modelling, Elsevier, vol. 28(1), pages 47-54.
  • Handle: RePEc:eee:ecmode:v:28:y:2011:i:1:p:47-54
    DOI: 10.1016/j.econmod.2010.10.001
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    Cited by:

    1. Laetitia Leroy & Antoine Bouet & Elisa Dienesch, 2012. "Trade liberalization, urban-rural remittances and income inequalities in Senegal: micro-foundations and empirical evidence in Computable General Equilibrium analysis," EcoMod2012 3829, EcoMod.

    More about this item

    Keywords

    Remittances; Family bargaining;

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • C79 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Other

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