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Selection Policy and Immigrants' Remittance Behaviour

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  • Mahuteau, Stephane

    (University of Adelaide)

  • Piracha, Matloob

    (University of Kent)

  • Tani, Massimiliano

    (University of New South Wales)

Abstract

This paper analyses the impact of a change in Australia's immigration policy, introduced in the mid-1990s, on migrants' remittance behaviour. More precisely, we compare the remittance behaviour of two cohorts who entered Australia before and after the policy change, which consists of stricter entry requirements. The results indicate that those who entered under more stringent conditions – the second cohort – have a lower probability to remit but, if remitting, they tend to remit, on average, a higher amount than those in the first cohort. We also find significant time and region effects. Contrary to some existing evidence, time spent in Australia positively affects the probability to remit while in terms of regional effects, South Asians remit the highest amount. We discuss intuitions for the results in the paper.

Suggested Citation

  • Mahuteau, Stephane & Piracha, Matloob & Tani, Massimiliano, 2010. "Selection Policy and Immigrants' Remittance Behaviour," IZA Discussion Papers 4874, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp4874
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    Cited by:

    1. Bettin, Giulia & Lucchetti, Riccardo & Zazzaro, Alberto, 2012. "Endogeneity and sample selection in a model for remittances," Journal of Development Economics, Elsevier, vol. 99(2), pages 370-384.
    2. Matloob Piracha & Amrita Saraogi, 2012. "The Determinants of Remittances: Evidence from Moldova," Oxford Development Studies, Taylor & Francis Journals, vol. 40(4), pages 467-491, December.
    3. William Collier & Matloob Piracha & Teresa Randazzo, 2018. "Remittances and return migration," Review of Development Economics, Wiley Blackwell, vol. 22(1), pages 174-202, February.
    4. Kaczmarczyk, Pawel, 2013. "Money for Nothing? Ukrainian Immigrants in Poland and their Remitting Behaviors," IZA Discussion Papers 7666, Institute of Labor Economics (IZA).
    5. Thi Huyen Le & Yoshinori Nakagawa & Yutaka Kobayashi, 2021. "Conditions under Which Rural-to-Urban Migration Enhances Social and Economic Sustainability of Home Communities: A Case Study in Vietnam," Sustainability, MDPI, vol. 13(15), pages 1-18, July.
    6. Kazi Abdul, Mannan & Khandaker Mursheda, Farhana, 2015. "Determinants of remittances in rural Bangladesh:An econometric analysis of the educational attainments of the households," MPRA Paper 97471, University Library of Munich, Germany, revised 2015.
    7. Catalina Amuedo-Dorantes & Thitima Puttitanun, 2014. "Remittances and immigration enforcement," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-26, December.

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    More about this item

    Keywords

    selection policy; immigration; remittances;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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