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

Author

Listed:
  • Frédéric DOCQUIER

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))

  • Hillel RAPOPORT

    (Department of Economics, Bar-Ilan University, EQUIPPE and Center for International Development, Harvard University)

  • Sara SALOMONE

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES) and Tor Vergata University)

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 simple 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 will be inversed-U shaped, with the increasing segment being longer (resp. shorter) for more restrictive (resp. selective) immigration policies. 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," LIDAM Discussion Papers IRES 2011012, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  • Handle: RePEc:ctl:louvir:2011012
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    More about this item

    Keywords

    Remittances; Migration; Brain Drain; Immigration Policy;
    All these keywords.

    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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