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Migration and Money: What determines Remittances? Evidence from Germany

Author

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  • Holst, Elke
  • Schrooten, Mechthild

Abstract

The determinants of migrants' remittances are the subject of this study based on German SOEP data. For our analysis of the probability and amount of remittances, we do not restrict ourselves on immigrants with a foreign citizenship, but focus on all individuals with a migration background. Major findings are: first, the degree of integration into German society matters. Second, the probability to remit is not dominated by income. Third, foreigners living in Germany are not a homogenous group concerning their remittance behavior: people with Turkish and former Yugoslavian citizenship, who are facing a comparable strong pressure for return migration, remit significantly more than others. The study points to potentially interesting directions for future research: (a) deeper investigations of the extent to which the legal status of the migrant influences cross-border transfer behavior and (b) reconsidering the theoretical arguments since the motive for remittances might have changed during the ongoing globalization process.

Suggested Citation

  • Holst, Elke & Schrooten, Mechthild, 2006. "Migration and Money: What determines Remittances? Evidence from Germany," Discussion Paper Series a477, Institute of Economic Research, Hitotsubashi University.
  • Handle: RePEc:hit:hituec:a477
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    References listed on IDEAS

    as
    1. Stark, Oded & Wang, You Qiang, 2002. "Migration dynamics," Economics Letters, Elsevier, vol. 76(2), pages 159-164, July.
    2. Rapoport, Hillel & Docquier, Frederic, 2006. "The Economics of Migrants' Remittances," Handbook on the Economics of Giving, Reciprocity and Altruism, Elsevier.
    3. Ernst Fehr & Urs Fischbacher & Bernhard von Rosenbladt & J�rgen Schupp & Gert G. Wagner, "undated". "A Nation-Wide Laboratory: Examining trust and trustworthiness by integrating behavioral experiments into representative surveys," IEW - Working Papers 141, Institute for Empirical Research in Economics - University of Zurich.
    4. Elke Holst & Dean R. Lillard & Thomas A. DiPrete, 2001. "Proceedings of the 2000 Fourth International Conference of German Socio-Economic Panel Study Users (GSOEP 2000): Editorial Introduction," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 70(1), pages 5-6.
    5. Leah Vanwey, 2004. "Altruistic and contractual remittances between male and female migrants and households in rural Thailand," Demography, Springer;Population Association of America (PAA), vol. 41(4), pages 739-756, November.
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    Cited by:

    1. repec:dau:papers:123456789/2574 is not listed on IDEAS
    2. Monica Roman, 2013. "Financial Effects of the International Migration in Europe: Modelling the Decision to Remit," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 60(4), pages 541-555, June.
    3. Möllers, Judith & Meyer, Wiebke & Xhema, Sherif & Buchenrieder, Gertrud, 2013. "A socio-economic picture of Kosovar migrants and their origin farm households
      [Sozioökonomische Einsichten in kosovarische Migrantenhaushalte in Deutschland und in ihre ländlichen Ursprungshaushalt
      ," IAMO Discussion Papers 140, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    4. Monica ROMAN & Maria Denisa VASILESCU, 2016. "Explaining the Migration Intentions Of Romanian Youth: Are Teenegers Different?," Romanian Statistical Review, Romanian Statistical Review, vol. 64(4), pages 69-86, December.
    5. Diego Battistón, 2010. "Remesas y Migración Internacional en América Latina: Simulación de los Efectos en la Pobreza y la Desigualdad," CEDLAS, Working Papers 0110, CEDLAS, Universidad Nacional de La Plata.
    6. Luis Miotti & El Mouhoub Mouhoud & Joel Oudinet, 2009. "Migrations And Determinants Of Remittances To Southern Mediterranean Countries: When History Matters !," Post-Print hal-00483303, HAL.
    7. Elke Holst & Andrea Schäfer & Mechthild Schrooten, 2011. "Remittances and Gender: Theoretical Considerations and Empirical Evidence," Discussion Papers of DIW Berlin 1099, DIW Berlin, German Institute for Economic Research.
    8. Amar Iqbal Anwar & Mazhar Yaseen Mughal, 2012. "Motives to remit: some microeconomic evidence from Pakistan," Economics Bulletin, AccessEcon, vol. 32(1), pages 574-585.
    9. Elke Holst & Andrea Schäfer & Mechthild Schrooten, 2010. "Gender, Transnational Networks and Remittances: Evidence from Germany," Discussion Papers of DIW Berlin 1005, DIW Berlin, German Institute for Economic Research.
    10. Jorge Eduardo Mendoza Cota, 2012. "Are remittances a stabilizing factor in the Mexican economy?," EconoQuantum, Revista de Economia y Negocios, Universidad de Guadalajara, Centro Universitario de Ciencias Economico Administrativas, Departamento de Metodos Cuantitativos y Maestria en Economia., vol. 9(1), pages 83-99, Enero-Jun.
    11. repec:dau:papers:123456789/5559 is not listed on IDEAS
    12. Hagen-Zanker, Jessica, 2010. "Modest expectations: Causes and effects of migration on migrant households in source countries," MPRA Paper 29507, University Library of Munich, Germany.
    13. Meyer, Wiebke, 2012. "Motives for remitting from Germany to Kosovo," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 69, number 69.
    14. Diehl, Claudia & Liebau, Elisabeth, 2015. "Turning back to Turkey - or Turning the Back on Germany? Remigration Intentions and Behavior of Turkish Immigrants in Germany between 1984 and 2011," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 22-41.
    15. Lee, Sang-Hyop & Sukrakarn, Nopparat & Choi, Jin-Young, 2011. "Repeat migration and remittances: Evidence from Thai migrant workers," Journal of Asian Economics, Elsevier, vol. 22(2), pages 142-151, April.
    16. Zizi GOSCHIN & Monica ROMAN, 2012. "Determinants of the remitting behaviour of Romanian emigrants in an economic crisis context," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 3, pages 87-103, December.

    More about this item

    Keywords

    remittances; international migration; altruism;

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers

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