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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," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2011012, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  • Handle: RePEc:ctl:louvir:2011012
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    File URL: http://sites.uclouvain.be/econ/DP/IRES/2011012.pdf
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    References listed on IDEAS

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    1. Giuliano, Paola & Ruiz-Arranz, Marta, 2009. "Remittances, financial development, and growth," Journal of Development Economics, Elsevier, vol. 90(1), pages 144-152, September.
    2. José De Sousa & Laetitia Duval, 2010. "Geographic distance and remittances in Romania: Out of sight, out of mind?," International Economics, CEPII research center, issue 121, pages 81-98.
    3. J. M. C. Santos Silva & Silvana Tenreyro, 2006. "The Log of Gravity," The Review of Economics and Statistics, MIT Press, vol. 88(4), pages 641-658, November.
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    Cited by:

    1. Kahanec, Martin, 2012. "Skilled Labor Flows: Lessons from the European Union," IZA Research Reports 49, Institute for the Study of Labor (IZA).
    2. Diego Alberto Sandoval Herrera & María Fernanda Reyes Roa, 2012. "¿Por qué los migrantes envían remesas?: Repaso de las principales motivaciones microeconómicas," BORRADORES DE ECONOMIA 010036, BANCO DE LA REPÚBLICA.
    3. Aomar Ibourk & Jabrane Amaghouss, 2014. "Impact of Migrant Remittances on Economic Empowerment of Women: A Macroeconomic Investigation," International Journal of Economics and Financial Issues, Econjournals, vol. 4(3), pages 597-611.

    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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