Insurance motives to remit: Evidence from a matched sample of Ethiopian internal migrants
Migration and remittances can be used by rural households as a means of insurance, investment, and income augmentation. Ample attention has been given to studying international remittance flows, since for many countries such transfers comprise a significant fraction of income. Remittance flows from internal migrants are relatively understudied, particularly in Africa, where remittance rates are poor. We use a unique matched migrant sample to study what drives the low remittance rates in Ethiopia. Descriptive statistics suggest remitters are positively selected in terms of wealth characteristics compared with the average tracked migrant. Limited skill transferability and liquidity largely explain low remittance rates in Ethiopia. Weaker evidence suggests migrants are additionally motivated to remit as a form of self-insurance against own shocks to income and investments towards future inheritable assets.
|Date of creation:||2011|
|Date of revision:|
|Contact details of provider:|| Postal: 2033 K Street, NW, Washington, DC 20006|
Web page: http://www.ifpri.org/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Stefan Dercon & John Hoddinott, 2007.
"Collective action and vulnerability: Burial societies in rural Ethiopia,"
Economics Series Working Papers
GPRG-WPS-076, University of Oxford, Department of Economics.
- Dercon, Stefan & Hoddinott, John & Krishnan, Pramila & Woldehannnam, Tassew, 2008. "Collective action and vulnerability: Burial societies in rural Ethiopia," CAPRi working papers 83, International Food Policy Research Institute (IFPRI).
- Freund, Caroline & Spatafora, Nikola, 2008. "Remittances, transaction costs, and informality," Journal of Development Economics, Elsevier, vol. 86(2), pages 356-366, June.
- Ilahi, Nadeem & Jafarey, Saqib, 1999. "Guestworker migration, remittances and the extended family: evidence from Pakistan," Journal of Development Economics, Elsevier, vol. 58(2), pages 485-512, April.
- Dean Yang, 2006.
"International Migration, Remittances, and Household Investment: Evidence from Philippine Migrants' Exchange Rate Shocks,"
NBER Working Papers
12325, National Bureau of Economic Research, Inc.
- Dean Yang, 2008. "International Migration, Remittances and Household Investment: Evidence from Philippine Migrants' Exchange Rate Shocks," Economic Journal, Royal Economic Society, vol. 118(528), pages 591-630, 04.
- Marcel Fafchamps & Bereket Kebede & Agnes R. Quisumbing, 2009. "Intrahousehold Welfare in Rural Ethiopia," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 71(4), pages 567-599, 08.
- Hoddinott, John, 1994. "A Model of Migration and Remittances Applied to Western Kenya," Oxford Economic Papers, Oxford University Press, vol. 46(3), pages 459-76, July.
- Heckman, James, 2013.
"Sample selection bias as a specification error,"
Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
- Tigran A. Melkonyan & David A. Grigorian, 2008. "Microeconomic Implications of Remittances in an Overlapping Generations Model with Altruism and Self-Interest," IMF Working Papers 08/19, International Monetary Fund.
- Rapoport, Hillel & Docquier, Frederic, 2006.
"The Economics of Migrants' Remittances,"
Handbook on the Economics of Giving, Reciprocity and Altruism,
- Bollard, Albert & McKenzie, David & Morten, Melanie, 2010.
"The remitting patterns of African migrants in the OECD,"
Policy Research Working Paper Series
5260, The World Bank.
- Albert Bollard & David McKenzie & Melanie Morten, 2009. "The Remitting Patterns of African Migrants in the OECD," CReAM Discussion Paper Series 0921, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
- 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 901-18, October.
- de la Briere, Benedicte & Sadoulet, Elisabeth & de Janvry, Alain & Lambert, Sylvie, 2002. "The roles of destination, gender, and household composition in explaining remittances: an analysis for the Dominican Sierra," Journal of Development Economics, Elsevier, vol. 68(2), pages 309-328, August.
- Mark Rosenzweig & Andrew D. Foster, 1995.
"Imperfect Commitment, Altruism, and the Family: Evidence from Transfer Behavior in Low-Income Rural Areas,"
_075, University of Pennsylvania.
- Andrew D. Foster & Mark R. Rosenzweig, 2001. "Imperfect Commitment, Altruism, And The Family: Evidence From Transfer Behavior In Low-Income Rural Areas," The Review of Economics and Statistics, MIT Press, vol. 83(3), pages 389-407, August.
- Gray, Clark & Mueller, Valerie, 2012. "Drought and Population Mobility in Rural Ethiopia," World Development, Elsevier, vol. 40(1), pages 134-145.
- Michael Clemens, 2010. "The Roots of Global Wage Gaps: Evidence from Randomized Processing of U.S. Visas," Working Papers 212, Center for Global Development.
- Catalina Amuedo-Dorantes & Susan Pozo, 2006. "Remittances as insurance: evidence from Mexican immigrants," Journal of Population Economics, Springer, vol. 19(2), pages 227-254, June.
- Agnes Quisumbing & Scott McNiven, 2010. "Moving Forward, Looking Back: the Impact of Migration and Remittances on Assets, Consumption, and Credit Constraints in the Rural Philippines," Journal of Development Studies, Taylor & Francis Journals, vol. 46(1), pages 91-113.
- Poirine, Bernard, 1997. "A theory of remittances as an implicit family loan arrangement," World Development, Elsevier, vol. 25(4), pages 589-611, January.
- Osili, Una Okonkwo, 2007. "Remittances and savings from international migration: Theory and evidence using a matched sample," Journal of Development Economics, Elsevier, vol. 83(2), pages 446-465, July.
- Du, Yang & Park, Albert & Wang, Sangui, 2005. "Migration and rural poverty in China," Journal of Comparative Economics, Elsevier, vol. 33(4), pages 688-709, December.
- Dean Yang, 2011. "Migrant Remittances," Journal of Economic Perspectives, American Economic Association, vol. 25(3), pages 129-52, Summer.
- Kadiyala, Suneetha & Quisumbing, Agnes & Rogers, Beatrice & Webb, Patrick, 2009. "The Impact of Prime Age Adult Mortality on Child Survival and Growth in Rural Ethiopia," World Development, Elsevier, vol. 37(6), pages 1116-1128, June.
- Tigran A. Melkonyan & David A. Grigorian, 2011. "Microeconomic Implications of Remittances in an Overlapping Generations Model with Altruism and a Motive to Receive Inheritance," Journal of Development Studies, Taylor & Francis Journals, vol. 48(8), pages 1026-1044, March.
- Nava Ashraf & Diego Aycinena & Claudia Martínez & Dean Yang, 2011. "Remittances and the Problem of Control: A Field Experiment Among Migrants from El Salvador," Working Papers wp341, University of Chile, Department of Economics.
When requesting a correction, please mention this item's handle: RePEc:fpr:ifprid:1090. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.