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Remittances as a Social Status Signaling Device

  • Radu Vranceanu

    ()

    (Economics Department - Essec Business School)

  • Claire Naiditch

    ()

    (ESSEC Business School - Essec Business School)

Like all human beings, migrants may have a concern about their prestige or social status in the eyes of left home family and friends. They can remit money in order to signal their economic success and increase their status. We show that, if migrants' income is private information, unsuccessful migrants might accept a worsening of their living conditions and send back home large amounts of remittances only in order to make residents believe that they are successful. In some cases, successful migrants can signal their true favorable economic situation by remitting an even larger amount.

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Paper provided by HAL in its series Post-Print with number hal-00551869.

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Date of creation: Dec 2009
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Publication status: Published in ESSEC Working paper. Document de Recherche ESSEC / Centre de recherche de l'ESSEC ISSN : 1291-961.. 2009, 26 p
Handle: RePEc:hal:journl:hal-00551869
Note: View the original document on HAL open archive server: https://hal-essec.archives-ouvertes.fr/hal-00551869
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