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Remittances and Chain Migration: Longitudinal Evidence from Bosnia and Herzegovina

  • Dimova, Ralitza


    (University of Manchester)

  • Wolff, François-Charles


    (University of Nantes)

Most of the literature on remittances has focused on their implications for the welfare of family members in the country of origin and has disregarded the possibility for remittances to trigger chain migration. In this paper, we address this issue with the use of longitudinal data from Bosnia and Herzegovina, one of the primary exporters of migrants and recipients of remittances in the world. Our panel data estimates indicate that remittances have a significant positive impact on the migration prospects of those remaining in the country of origin. Highly educated, healthy and young individuals are those most likely to migrate, suggesting that the implications of prospective migration on both the labor market and the rest of the economy in the origin country are likely to be negative.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4083.

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Length: 24 pages
Date of creation: Mar 2009
Date of revision:
Handle: RePEc:iza:izadps:dp4083
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  1. Michel, BEINE & Frédéric, DOCQUIER & Hillel, RAPOPORT, 2006. "Brain drain and human capital formation in developing countries : winners and losers," Discussion Papers (ECON - Département des Sciences Economiques) 2006023, Université catholique de Louvain, Département des Sciences Economiques.
  2. Rapoport, Hillel & Docquier, Frederic, 2006. "The Economics of Migrants' Remittances," Handbook on the Economics of Giving, Reciprocity and Altruism, Elsevier.
  3. Azam, Jean-Paul & Gubert, Flore, 2005. "Those in Kayes. The impact of remittances on the recipients in Africa," Economics Papers from University Paris Dauphine 123456789/4571, Paris Dauphine University.
  4. Hendrik P. van Dalen & George Groenewold & Jeanette J. Schoorl, 2003. "Out of Africa: What drives the Pressure to emigrate?," Tinbergen Institute Discussion Papers 03-059/3, Tinbergen Institute.
  5. Ilahi, Nadeem & Jafarey, Saqib, 1999. "Guestworker migration, remittances and the extended family: evidence from Pakistan," Journal of Development Economics, Elsevier, vol. 58(2), pages 485-512, April.
  6. Lucas, Robert E B, 1987. "Emigration to South Africa's Mines," American Economic Review, American Economic Association, vol. 77(3), pages 313-30, June.
  7. James Heckman & Hidehiko Ichimura & Jeffrey Smith & Petra Todd, 1998. "Characterizing Selection Bias Using Experimental Data," Econometrica, Econometric Society, vol. 66(5), pages 1017-1098, September.
  8. Christian Dustmann, 2003. "Children and return migration," Journal of Population Economics, Springer, vol. 16(4), pages 815-830, November.
  9. Alice Mesnard, 2004. "Temporary migration and capital market imperfections," Oxford Economic Papers, Oxford University Press, vol. 56(2), pages 242-262, April.
  10. Richard H. Adams, Jr., 1992. "The Effects of Migration and Remittances on Inequality in Rural Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 31(4), pages 1189-1206.
  12. Mckenzie, David & Rapoport, Hillel, 2007. "Network effects and the dynamics of migration and inequality: Theory and evidence from Mexico," Journal of Development Economics, Elsevier, vol. 84(1), pages 1-24, September.
  13. repec:oup:restud:v:47:y:1980:i:1:p:225-38 is not listed on IDEAS
  14. Taylor, J. Edward, 1992. "Remittances and inequality reconsidered: Direct, indirect, and intertemporal effects," Journal of Policy Modeling, Elsevier, vol. 14(2), pages 187-208, April.
  15. Edwards, Alejandra Cox & Ureta, Manuelita, 2003. "International migration, remittances, and schooling: evidence from El Salvador," Journal of Development Economics, Elsevier, vol. 72(2), pages 429-461, December.
  16. Michel Beine & Frédéric Docquier & Hillel Rapoport, 2001. "Brain drain and economic growth: theory and evidence," ULB Institutional Repository 2013/10449, ULB -- Universite Libre de Bruxelles.
  17. J. Edward Taylor & Scott Rozelle & Alan deBrauw, 1999. "Migration, Remittances, and Agricultural Productivity in China," American Economic Review, American Economic Association, vol. 89(2), pages 287-291, May.
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