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Social Relations and Remittances: Evidence from Canadian Micro Data

  • DeVoretz, Don J.

    ()

    (Simon Fraser University)

  • Vadean, Florin

    ()

    (University of Kent)

We theorise that remittances to persons outside the households represent transfers to maintain social relations with relatives and friends and charitable remittances are expenditures which foster group membership. We estimate transfer functions as part of a larger expenditure system and calculate Engel elasticities for remittances to persons and to charities. We conclude that expenditures to enhance social relations with relatives and friends are a normal good for recent Asian immigrants and a luxury good for all other immigrants and Canadians. This fact indicates strong cultural differences in the remittance behaviour of the population groups included.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2501.

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Length: 36 pages
Date of creation: Dec 2006
Date of revision:
Handle: RePEc:iza:izadps:dp2501
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  1. 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 515-33, December.
  2. Becker, Gary S, 1974. "A Theory of Social Interactions," Journal of Political Economy, University of Chicago Press, vol. 82(6), pages 1063-93, Nov.-Dec..
  3. Cox, Donald, 1987. "Motives for Private Income Transfers," Journal of Political Economy, University of Chicago Press, vol. 95(3), pages 508-46, June.
  4. 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.
  5. Bernheim, B Douglas & Shleifer, Andrei & Summers, Lawrence H, 1986. "The Strategic Bequest Motive," Journal of Labor Economics, University of Chicago Press, vol. 4(3), pages S151-82, July.
  6. 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.
  7. Cox, Donald & Rank, Mark R, 1992. "Inter-vivos Transfers and Intergenerational Exchange," The Review of Economics and Statistics, MIT Press, vol. 74(2), pages 305-14, May.
  8. Bauer, Thomas & Sinning, Mathias, 2005. "The Savings Behaviour of Temporary and Permanent Migrants in Germany," CEPR Discussion Papers 5102, C.E.P.R. Discussion Papers.
  9. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June.
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