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Motives to Remit: Evidence from Tracked Internal Migrants in Ethiopia

Author

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  • de Brauw, Alan
  • Mueller, Valerie
  • Woldehanna, Tassew

Abstract

Remittances are used by households for insurance, investment, and income. Flows from internal migrants are relatively understudied in Africa, where migrants are less likely to remit to their origin households. We use a unique matched migrant sample to study what drives the low remittance rates in Ethiopia. Descriptive statistics suggest remitters are positively selected in terms of wealth characteristics compared with the average tracked migrant. Limited skill transferability and liquidity largely explain low remittance rates in Ethiopia. Migrants are additionally motivated to remit as a form of self-insurance against own shocks to income and to protect their family’s productive assets.

Suggested Citation

  • de Brauw, Alan & Mueller, Valerie & Woldehanna, Tassew, 2013. "Motives to Remit: Evidence from Tracked Internal Migrants in Ethiopia," World Development, Elsevier, vol. 50(C), pages 13-23.
  • Handle: RePEc:eee:wdevel:v:50:y:2013:i:c:p:13-23
    DOI: 10.1016/j.worlddev.2013.04.008
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Naudé, Wim, 2017. "Entrepreneurship, Education and the Fourth Industrial Revolution in Africa," IZA Discussion Papers 10855, Institute for the Study of Labor (IZA).
    2. Atsede Desta Tegegne & Marianne Penker, 2016. "Determinants of rural out-migration in Ethiopia: Who stays and who goes?," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 35(34), pages 1011-1044, October.
    3. Mahé, Clothilde & Naudé, Wim, 2016. "Migration, occupation and education: Evidence from Ghana," MERIT Working Papers 018, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    4. Jean-François Maystadt & Valerie Mueller & Ashwini Sebastian, 2016. "Environmental Migration and Labor Markets in Nepal," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 3(2), pages 417-452.
    5. Bredtmann, Julia & Martínez Flores, Fernanda & Otten, Sebastian, 2016. "Remittances and the brain drain: Evidence from microdata for Sub-Saharan Africa," Ruhr Economic Papers 654, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    6. Kosec, Katrina & Ghebru, Hosaena & Holtemeyer, Brian & Mueller, Valerie & Schmidt, Emily, 2016. "The effect of land inheritance on youth employment and migration decisions: Evidence from rural Ethiopia," IFPRI discussion papers 1594, International Food Policy Research Institute (IFPRI).
    7. Kikulwe, Enoch M. & Fischer, Elisabeth & Qaim, Matin, 2013. "Mobile money, market transactions, and household income in rural Kenya," Discussion Papers 155847, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    8. Lee, Yu Na, 2015. "Effect of Price Risk on Migration: Evidence from Ethiopian Rural Households," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205812, Agricultural and Applied Economics Association;Western Agricultural Economics Association.
    9. de Brauw, Alan & Mueller, Valerie & Lee, Hak Lim, 2014. "The Role of Rural–Urban Migration in the Structural Transformation of Sub-Saharan Africa," World Development, Elsevier, vol. 63(C), pages 33-42.
    10. Hirvonen, Kalle & Lilleør, Helene Bie, 2015. "Going Back Home: Internal Return Migration in Rural Tanzania," World Development, Elsevier, vol. 70(C), pages 186-202.
    11. World Bank, 2015. "Tanzania Poverty Assessment," World Bank Other Operational Studies 21871, The World Bank.
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