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The Purpose of Remittances: Evidence from Germany

Author

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  • Bauer Thomas

    () (RWI, Hohenzollernstr. 1–3, 45128 Essen, Germany, Ruhr-University Bochum, and IZA Bonn)

  • Sinning Mathias

    () (Social Policy Evaluation, Analysis and Research Centre (SPEAR), Research School of Social Sciences (RSSS), Australian National University, Fellows Road, Coombs Building (Building 9), Canberra ACT 0200, Australia, RWI, and IZA Bonn)

Abstract

This paper examines the purpose of remittances using individual data of migrants in Germany. Particular attention is paid to migrants’ savings and transfers to family members in the home country. Our findings indicate that migrants who intend to stay in Germany only temporarily have a higher propensity to save and save larger amounts in their home country than permanent migrants. A similar picture emerges when considering migrants’ payments to family members abroad. The results of a decomposition analysis indicate that temporary and permanent migrants seem to have different preferences towards sending transfers abroad, while economic characteristics and the composition of households in home and host countries are less relevant.

Suggested Citation

  • Bauer Thomas & Sinning Mathias, 2009. "The Purpose of Remittances: Evidence from Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 229(6), pages 730-742, December.
  • Handle: RePEc:jns:jbstat:v:229:y:2009:i:6:p:730-742
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    References listed on IDEAS

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    More about this item

    Keywords

    International migration; savings; remittances;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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