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Insurance and remittances: New evidence from Latin American immigrants to the US

Author

Listed:
  • Bharati Basu

    (Department of Economics, Central Michigan University, Mount Pleasant MI 48859, USA)

  • James T. Bang

    (Department of Finance, Economics and Decision Sciences, St. Ambrose University, Davenport, IA 52807, USA)

Abstract

This paper examines how the probability of sending remittances and the level of remittances sent are influenced by immigrants' desire to insure against uncertainty, as opposed to factors that result in remittances with altruistic motives. Using for the first time both 1) data from the Mexican Migration Project and the Latin American Migration Project and 2) the predicted probability of unemployment in the destination country as a measure of immigrants' economic uncertainty, we find that for Latin American Immigrants insurance motives play a more dominant role than altruistic motives.

Suggested Citation

  • Bharati Basu & James T. Bang, 2013. "Insurance and remittances: New evidence from Latin American immigrants to the US," Migration Letters, Migration Letters, vol. 10(3), pages 383-398, September.
    • Handle: RePEc:mig:journl:v:10:y:2013:i:3:p:383-398
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    File URL: https://journal.tplondon.com/index.php/ml/article/view/45/56
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    References listed on IDEAS

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    6. HwaJung Choi, 2007. "Are Remittances Insurance? Evidence from Rainfall Shocks in the Philippines," The World Bank Economic Review, World Bank, vol. 21(2), pages 219-248, May.
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    Cited by:

    1. Ahsan Ullah, 2017. "Do remittances supplement South Asian development?," Remittances Review, Remittances Review, vol. 2(1), pages 31-45, May.
    2. Rosa Weber & Douglas S. Massey, 2023. "Assessing the Effect of Increased Deportations on Mexican Migrants’ Remittances and Savings Brought Home," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 42(2), pages 1-27, April.
    3. Gloria Clarissa O. Dzeha, 2016. "The decipher, theory or empirics: a review of remittance studies," African Journal of Accounting, Auditing and Finance, Inderscience Enterprises Ltd, vol. 5(2), pages 113-134.
    4. Cornelia Serena, PASCA, 2016. "Monetary Remittance - Romania Case Study," Contemporary Economy Journal, Constantin Brancoveanu University, vol. 1(3), pages 50-59.

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