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The remitting patterns of African migrants in the OECD

Author

Listed:
  • Bollard, Albert
  • McKenzie, David
  • Morten, Melanie

Abstract

Recorded remittances to Africa have grown dramatically over the past decade. Yet data limitations still mean relatively little is known about which migrants remit, how much they remit, and how their remitting behavior varies with gender, education, income levels, and duration abroad. This paper constructs the most comprehensive remittance database on immigrants in the OECD currently available, containing microdata on more than 12,000 African immigrants. Using this microdata the authors establish several basic facts about the remitting patterns of Africans, and then explore how key characteristics of policy interest relate to remittance behavior. Africans are found to remit twice as much on average as migrants from other developing countries, and those from poorer African countries are more likely to remit than those from richer African countries. Male migrants remit more than female migrants, particularly among those with a spouse remaining in the home country; more-educated migrants remit more than less educated migrants; and although the amount remitted increases with income earned, the gradient is quite flat over a large range of income. Finally, there is little evidence that the amount remitted decays with time spent abroad, with reductions in the likelihood of remitting offset by increases in the amount remitted conditional on remitting.

Suggested Citation

  • Bollard, Albert & McKenzie, David & Morten, Melanie, 2010. "The remitting patterns of African migrants in the OECD," Policy Research Working Paper Series 5260, The World Bank.
  • Handle: RePEc:wbk:wbrwps:5260
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    References listed on IDEAS

    as
    1. Albert Bollard & David McKenzie & Melanie Morten & Hillel Rapoport, 2011. "Remittances and the Brain Drain Revisited: The Microdata Show That More Educated Migrants Remit More," World Bank Economic Review, World Bank Group, vol. 25(1), pages 132-156, May.
    2. Philippe De Vreyer & Flore Gubert & François Roubaud, 2010. "Migration, Self-selection and Returns to Education in the WAEMU," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 19(1), pages 52-87, January.
    3. Sanjeev Gupta & Catherine A Pattillo & Smita Wagh, 2007. "Impact of Remittances on Poverty and Financial Development in Sub-Saharan Africa," IMF Working Papers 07/38, International Monetary Fund.
    4. Luis Miotti & El Mouhoub Mouhoud & Joel Oudinet, 2009. "Migrations And Determinants Of Remittances To Southern Mediterranean Countries: When History Matters !," Post-Print hal-00483303, HAL.
    5. Jean-Paul Azam & Flore Gubert, 2006. "Migrants' Remittances and the Household in Africa: A Review of Evidence," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 15(2), pages 426-462, December.
    6. Dilip Ratha & Sanket Mohapatra & Ani Silwal, 2009. "Outlook for Remittance Flows 2009-2011 : Remittances Expected to Fall by 7-10 Percent in 2009," World Bank Other Operational Studies 10975, The World Bank.
    7. Osili, Una Okonkwo, 2007. "Remittances and savings from international migration: Theory and evidence using a matched sample," Journal of Development Economics, Elsevier, vol. 83(2), pages 446-465, July.
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Does gender matter in migration? Why I don’t believe any studies which claim it does
      by David McKenzie in Development Impact on 2013-02-19 04:14:03

    Citations

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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. de Brauw, Alan & Mueller, Valerie & Woldehanna, Tassew, 2011. "Insurance motives to remit: Evidence from a matched sample of Ethiopian internal migrants," ESSP working papers 25, International Food Policy Research Institute (IFPRI).
    3. Yaw Nyarko, 2014. "The Returns to the Brain Drain and Brain Circulation in Sub-Saharan Africa: Some Computations Using Data from Ghana," NBER Chapters,in: African Successes, Volume II: Human Capital, pages 305-345 National Bureau of Economic Research, Inc.
    4. Aísa, R. & Andaluz, J. & Larramona, G., 2011. "How does bargaining power affect remittances?," Economic Modelling, Elsevier, vol. 28(1), pages 47-54.
    5. Deodat E. Adenutsi, 2014. "macroeconomic determinants of workers’ remittances and compensation of employees in sub-saharan Africa," Journal of Developing Areas, Tennessee State University, College of Business, vol. 48(1), pages 337-360, January-M.
    6. Naudé, Wim & Bezuidenhout, Henri, 2012. "Remittances provide resilience against disasters in Africa," MERIT Working Papers 026, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    7. John Gibson & David McKenzie, 2012. "The Economic Consequences of ‘Brain Drain’ of the Best and Brightest: Microeconomic Evidence from Five Countries," Economic Journal, Royal Economic Society, vol. 122(560), pages 339-375, May.
    8. Bredtmann, Julia & Martínez Flores, Fernanda & Otten, Sebastian, 2016. "Remittances and the brain drain: Evidence from microdata for Sub-Saharan Africa," Ruhr Economic Papers 654, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    9. Kiawu, James & Jones, Keithly G, 2013. "Implications of food aid and remittances for West African food import demand," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 8(1), July.
    10. Michael Clemens and David McKenzie, 2014. "Why Don't Remittances Appear to Affect Growth? - Working Paper 366," Working Papers 366, Center for Global Development.
    11. Aparicio Fenoll, Ainhoa, 2011. "Network Effects on Migrants' Remittances," IZA Discussion Papers 5657, Institute for the Study of Labor (IZA).
    12. repec:nbr:nberch:13368 is not listed on IDEAS
    13. Giulia Bettin & Riccardo Lucchetti & Alberto Zazzaro, 2009. "Income, consumption and remittances: evidence from immigrants to Australia," Mo.Fi.R. Working Papers 34, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
    14. de Brauw, Alan & Mueller, Valerie & Woldehanna, Tassew, 2013. "Motives to Remit: Evidence from Tracked Internal Migrants in Ethiopia," World Development, Elsevier, vol. 50(C), pages 13-23.
    15. Wim Naudé & Henri Bezuidenhout, 2014. "Migrant Remittances Provide Resilience Against Disasters in Africa," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 42(1), pages 79-90, March.
    16. Clemens, Michael A. & McKenzie, David, 2014. "Why don't remittances appear to affect growth ?," Policy Research Working Paper Series 6856, The World Bank.

    More about this item

    Keywords

    Population Policies; Remittances; Gender and Development; Debt Markets; International Migration;

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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