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

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  • 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 of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp1714
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    References listed on IDEAS

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    Cited by:

    1. Zakiyyah, Varachia, 2018. "Literature Review of Migration and Development," MPRA Paper 106444, University Library of Munich, Germany, revised 2018.
    2. Vitalievna Lebedeva, Elena, 2012. "Migration and Development: A Comprehensive Literature Review," MPRA Paper 104373, University Library of Munich, Germany, revised 2012.
    3. 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.
    4. 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.
    5. Flippo, Behnaz, 2009. "A Literature Review: Migration and Remittances," MPRA Paper 104877, University Library of Munich, Germany, revised 2009.
    6. Chrząstowska, Bożena, 2010. "Migration and Remittances: A Literature Review on Remittance Behaviour," MPRA Paper 104690, University Library of Munich, Germany, revised 2010.
    7. Antonella, Barbarito, 2013. "Migration, Remittances and Development: A Literature Review," MPRA Paper 104715, University Library of Munich, Germany, revised 2013.
    8. MITSUI, Izumi, 2019. "A Literature Review of Economic Diaspora," MPRA Paper 109115, University Library of Munich, Germany, revised 2019.
    9. David, Blight, 2017. "Literature Review on International Migration: Development Perspectives," MPRA Paper 106312, University Library of Munich, Germany, revised 2017.
    10. Enrique Graue, Wiechers, 2018. "A Literature Review of Economic Migration," MPRA Paper 109870, University Library of Munich, Germany, revised 2018.
    11. Carmen, Maria del, 2018. "Economic Migration and Diaspora: A Literature Review," MPRA Paper 109498, University Library of Munich, Germany, revised 2018.
    12. 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.
    13. Akasaka, Shintaro, 2016. "Theoretical Review of Migration and Development," MPRA Paper 106364, University Library of Munich, Germany, revised 2016.
    14. 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.
    15. Binhan Elif, Yilmaz, 2010. "Stability, Cyclicality and Sustainability of Migration: A Literature Review," MPRA Paper 104258, University Library of Munich, Germany, revised 2010.
    16. Michael, Owiso, 2008. "Literature Review: Migration, Remittances and Development," MPRA Paper 104988, University Library of Munich, Germany, revised 2008.
    17. Chowdhury Murshed & Das Anupam, 2016. "Remittance Behaviour of Chinese and Indian Immigrants in Canada," Review of Economics, De Gruyter, vol. 67(2), pages 185-208, August.
    18. DeVoretz, Don J., 2006. "A History of Canadian Recruitment of Highly Skilled Immigrants: Circa 1980-2001," IZA Discussion Papers 2197, Institute of Labor Economics (IZA).
    19. Zakiyyah, Varachia, 2019. "Dynamics and Sustainability of International Migration and Development Nexus," MPRA Paper 106456, University Library of Munich, Germany, revised 2019.
    20. Christidis, Les, 2008. "Literature Review on Migration and Remittances Development," MPRA Paper 105237, University Library of Munich, Germany, revised 2008.
    21. Akasaka, Shintaro, 2017. "A Literature Review: International Migration and Development Perspectives," MPRA Paper 106363, University Library of Munich, Germany, revised 2017.

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    Keywords

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    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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