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Remittances, Migrants’ Education and Immigration Policy: Theory and Evidence from Bilateral Data

Author

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  • Frédéric Docquier
  • Hillel Rapoport

    () (Bar-Ilan University)

  • Sara Salomone

Abstract

We investigate the relationship between remittances and migrants’ education both theoretically and empirically, using original bilateral remittance data. At a theoretical level we lay out a model of remittances interacting migrants’ human capital with two dimensions of immigration policy: restrictiveness, and selectivity. The model predicts that the relationship between remittances and migrants’ education is ambiguous and depends on the immigration policy conducted at destination. The effect of education is more likely to be positive when the immigration policy is more restrictive and less skill-selective. These predictions are then tested empirically using bilateral remittance and migration data and proxy measures for the restrictiveness and selectivity of immigration policies at destination. The results strongly support the theoretical analysis, suggesting that immigration policies determine the sign and magnitude of the relationship between remittances and migrants’ education.

Suggested Citation

  • Frédéric Docquier & Hillel Rapoport & Sara Salomone, 2011. "Remittances, Migrants’ Education and Immigration Policy: Theory and Evidence from Bilateral Data," Working Papers 2011-27, Bar-Ilan University, Department of Economics.
    • Handle: RePEc:biu:wpaper:2011-27
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    More about this item

    Keywords

    Remittances; Migration; Brain Drain; Immigration Policy.;

    JEL classification:

    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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