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A Model of Foreign-Born Transfers: Evidence from Canadian Micro Data

Author

Listed:
  • DeVoretz, Don J.

    () (Simon Fraser University)

  • Vadean, Florin

    () (University of Kent)

Abstract

This paper models financial transfers outside the household for both the Canadian-born and foreign-born Canadian populations in a traditional expenditure framework. Using survey data we estimate transfer functions as part of a larger expenditure system and calculate Engel elasticities for remittances by both the Canadian and foreign-born populations. We conclude that transfers outside the household are a normal good for recent Asian immigrants and a luxury good for all other immigrants and Canadians. Immigrant transfers upon arrival are greater than Canadian-born transfers indicating a strong entry effect. Assimilation or convergence to the Canadian-born norm over time is however very slow. We also find evidence of negative foreign-born transfers as sending country households remit to Canadian immigrant households. Finally, all foreign-born groups generally consider remittances to charitable organizations a greater necessity than inter-household transfers.

Suggested Citation

  • DeVoretz, Don J. & Vadean, Florin, 2005. "A Model of Foreign-Born Transfers: Evidence from Canadian Micro Data," IZA Discussion Papers 1714, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp1714
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    References listed on IDEAS

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    1. Thomas Bauer & Mathias Sinning, 2011. "The savings behavior of temporary and permanent migrants in Germany," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(2), pages 421-449, April.
    2. Cox, Donald & Rank, Mark R, 1992. "Inter-vivos Transfers and Intergenerational Exchange," The Review of Economics and Statistics, MIT Press, vol. 74(2), pages 305-314, May.
    3. Adams Jr., Richard H. & Cuecuecha, Alfredo, 2010. "Remittances, Household Expenditure and Investment in Guatemala," World Development, Elsevier, vol. 38(11), pages 1626-1641, November.
    4. 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 901-918, October.
    5. Cox, Donald, 1987. "Motives for Private Income Transfers," Journal of Political Economy, University of Chicago Press, vol. 95(3), pages 508-546, June.
    6. Dennis Ahlburg & Richard Brown, 1998. "Migrants' intentions to return home and capital transfers: A study of Tongans and Samoans in Australia," Journal of Development Studies, Taylor & Francis Journals, vol. 35(2), pages 125-151.
    7. Shamsuddin, Abul F M & DeVoretz, Don J, 1998. "Wealth Accumulation of Canadian and Foreign-Born Households in Canada," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 44(4), pages 515-533, December.
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    Cited by:

    1. Thomas K. Bauer & Mathias G. Sinning, 2009. "The Purpose of Remittances – Evidence from Germany," Ruhr Economic Papers 0109, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    2. Mathias Sinning, 2011. "Determinants of savings and remittances: empirical evidence from immigrants to Germany," Review of Economics of the Household, Springer, vol. 9(1), pages 45-67, March.
    3. Bauer Thomas & Sinning Mathias, 2009. "The Purpose of Remittances: Evidence from Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 229(6), pages 730-742, December.
    4. repec:zbw:rwirep:0023 is not listed on IDEAS
    5. Mathias Sinning, 2007. "Determinants of Savings and Remittances – Empirical Evidence from Immigrants to Germany," Ruhr Economic Papers 0023, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    6. DeVoretz, Don J., 2006. "A History of Canadian Recruitment of Highly Skilled Immigrants: Circa 1980-2001," IZA Discussion Papers 2197, Institute for the Study of Labor (IZA).
    7. repec:zbw:rwirep:0109 is not listed on IDEAS

    More about this item

    Keywords

    immigration; remittances;

    JEL classification:

    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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