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Bulgarian Migrant Remittances and Legal Status: Some Micro-Level Evidence from Madrid

Author

Listed:
  • Eugenia Markova

    (London School of Economics)

  • Barry Reilly

    (University of Sussex)

Abstract

This paper investigates the extent to which consumption patterns of Albanian households are affected by the receipt of migrant remittances. Domestic and international remittances are considered and differences in their impacts on household consumption patterns assessed. The study finds that the consumption pattern for households in receipt of internal remittances is not statistically different from those that do not receive such transfers. On the other hand, households who receive remittances from abroad spend, on average and ceteris paribus, a lower share of their expenditure on food and a higher share on consumer durables compared to households who do not receive any type of migrant remittances. However, in terms of the impact of remittances on marginal spending behaviour, even international remittances do not seem to play a substantial role, in contrast to the evidence reported in other recent studies in this area of research. This may be due to the fact that the remittance variable that we use is failing to capture all households who are receiving remittances, or may reflect that in Albania both domestic and international remittances only have a modest effect on consumption patterns of households.

Suggested Citation

  • Eugenia Markova & Barry Reilly, 2007. "Bulgarian Migrant Remittances and Legal Status: Some Micro-Level Evidence from Madrid," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 5(1), pages 55-69.
  • Handle: RePEc:seb:journl:v:5:y:2007:i:1:p:55-69
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    File URL: http://www.asecu.gr/Seeje/issue08/markova.pdf
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    References listed on IDEAS

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    1. Smith, Richard J & Blundell, Richard W, 1986. "An Exogeneity Test for a Simultaneous Equation Tobit Model with an Application to Labor Supply," Econometrica, Econometric Society, vol. 54(3), pages 679-685, May.
    2. Lucas, Robert E B & Stark, Oded, 1985. "Motivations to Remit: Evidence from Botswana," Journal of Political Economy, University of Chicago Press, vol. 93(5), pages 901-918, October.
    3. Johnson, George E & Whitelaw, W E, 1974. " Urban-Rural Income Transfers in Kenya: An Estimated-Remittances Function," Economic Development and Cultural Change, University of Chicago Press, vol. 22(3), pages 473-479, April.
    4. Qiming Liu & Barry Reilly, 2004. "Income transfers of Chinese rural migrants: some empirical evidence from Jinan," Applied Economics, Taylor & Francis Journals, vol. 36(12), pages 1295-1313.
    5. Brown, Richard P. C., 1997. "Estimating remittance functions for Pacific Island Migrants," World Development, Elsevier, vol. 25(4), pages 613-626, January.
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    Citations

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    Cited by:

    1. Bettin, Giulia & Lucchetti, Riccardo & Zazzaro, Alberto, 2012. "Endogeneity and sample selection in a model for remittances," Journal of Development Economics, Elsevier, vol. 99(2), pages 370-384.
    2. repec:bas:econst:y:2016:i:5:p:117-141 is not listed on IDEAS
    3. Rupayan Gupta & S. Aaron Hegde, 2009. "An Exploratory Study of Financial Remittances Among Non-Resident Indians in the United States," Journal of Family and Economic Issues, Springer, vol. 30(2), pages 184-192, June.
    4. Theodore Palivos, 2009. "Welfare effects of illegal immigration," Journal of Population Economics, Springer;European Society for Population Economics, vol. 22(1), pages 131-144, January.
    5. Matloob Piracha & Stephane Mahuteau & Massimiliano Tani, 2010. "Selection Policy and Immigrants’ Remittance Behaviour," Studies in Economics 1003, School of Economics, University of Kent.
    6. Yoko Niimi & Thai Hung Pham & Barry Reilly, 2009. "Determinants of Remittances: Recent Evidence Using Data on Internal Migrants in Vietnam," Asian Economic Journal, East Asian Economic Association, vol. 23(1), pages 19-39, March.
    7. Vesselin Mintchev & Venelin Boshnakov, 2016. "The Bulgarian Community in Spain (Will the Bulgarians Return from Spain?)," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 5, pages 117-141.
    8. Iskra Christova-Balkanska, 2010. "Diversity and the Bulgarian Labor Emigration Case," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 65-84.
    9. Matloob Piracha & Teresa Randazzo, 2011. "Remittances and Return Migration," Studies in Economics 1118, School of Economics, University of Kent.
    10. Kaczmarczyk, Pawel, 2013. "Money for Nothing? Ukrainian Immigrants in Poland and their Remitting Behaviors," IZA Discussion Papers 7666, Institute for the Study of Labor (IZA).
    11. Vesselin Mintchev & Venelin Boshnakov, 2007. "Empirical Assessment on the Adjustments of Bulgarian Return Migrants," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 5, pages 13-32.
    12. Giulia Bettin & Riccardo Lucchetti & Alberto Zazzaro, 2009. "Income, consumption and remittances: evidence from immigrants to Australia," Mo.Fi.R. Working Papers 34, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
    13. Farai Jena, 2016. "The remittance behaviour of Kenyan sibling migrants," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-19, December.

    More about this item

    Keywords

    Bulgarian migrants remittances legal status;

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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