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Subjectively-assessed Welfare and International Remittances: Evidence from Tonga

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  • Richard Brown
  • Eliana Jimenez

Abstract

Using data from a customised household survey in Tonga we assess the responsiveness of migrants' remittances to perceived needs of recipients. We extend a mixed-motives model, incorporating subjectively-assessed recipient welfare. We find evidence supportive of altruism for households below a subjective threshold, implying that remittances provide important social protection for the poor. We also find a positive relationship for those above the threshold implying that welfare improvements in migrant-sending countries could increase or decrease remittance flows depending on pre-transfer welfare level. The effects of remittances on poverty alleviation and income distribution are hence more complex and ambiguous than previous studies suggest.

Suggested Citation

  • Richard Brown & Eliana Jimenez, 2011. "Subjectively-assessed Welfare and International Remittances: Evidence from Tonga," Journal of Development Studies, Taylor & Francis Journals, vol. 47(6), pages 829-845.
    • Handle: RePEc:taf:jdevst:v:47:y:2011:i:6:p:829-845
    DOI: 10.1080/00220388.2010.501376
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    Cited by:

    1. Richard P.C. Brown & Gareth Leeves & Prabha Prayaga, 2014. "Sharing Norm Pressures and Community Remittances: Evidence from a Natural Disaster in the Pacific Islands," Journal of Development Studies, Taylor & Francis Journals, vol. 50(3), pages 383-398, March.
    2. Alpaslan Akay & Corrado Giulietti & Juan Robalino & Klaus Zimmermann, 2014. "Remittances and well-being among rural-to-urban migrants in China," Review of Economics of the Household, Springer, vol. 12(3), pages 517-546, September.
    3. Catia Batista & Janis Umblijs, 2016. "Do migrants send remittances as a way of self-insurance?," Oxford Economic Papers, Oxford University Press, vol. 68(1), pages 108-130.
    4. La, Hai Anh & Xu, Ying, 2017. "Remittances, social security, and the crowding-out effect: Evidence from Vietnam," Journal of Asian Economics, Elsevier, vol. 49(C), pages 42-59.
    5. Richard Brown & Jørgen Carling & Sonja Fransen & Melissa Siegel, 2014. "Measuring remittances through surveys," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 31(41), pages 1243-1274.
    6. Ongudi, Silas & Thiam, Djiby & Wagner, Natascha, 2023. "Public transfers and crowding-in and -out of private transfers: Experimental evidence from Kenya," World Development Perspectives, Elsevier, vol. 31(C).
    7. repec:pri:indrel:dsp01cn69m419r is not listed on IDEAS
    8. Fransen, Sonja & Mazzucato, Valentina, 2014. "Remittances and Household Wealth after Conflict: A Case Study on Urban Burundi," World Development, Elsevier, vol. 60(C), pages 57-68.
    9. Wasseem Mina, 2018. "Migrant Remittances and Social Protection," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1811, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.

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