IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Remittances and the Wage Impact of Immigration

This paper examines how the outflow of remittances affects the wages of native workers. The model shows that the wage impact of immigration depends on the competing effects of an increase in labor market competition and an increase in the consumer base. Immigrant remittances provide a unique way of isolating this latter effect since they reduce the consumer base but not the workforce. The predictions of the model are tested using an unusually rich German data set that has detailed information on remittances and wages. As expected, the results indicate that a one percent increase in remittances depress the wages of native workers by 0.06%. Furthermore, remittances predominantly affect workers in non-traded industries that are more reliant on domestic consumption.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
File Function: Full text
Download Restriction: no

Paper provided by Department of Economics, Williams College in its series Department of Economics Working Papers with number 2011-13.

in new window

Length: 51 pages
Date of creation: Nov 2011
Date of revision: Apr 2014
Handle: RePEc:wil:wileco:2011-13
Contact details of provider: Postal:
Williamstown, MA 01267

Phone: 413 597 2476
Fax: 413 597 4045
Web page:

More information through EDIRC

Order Information: Email:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Mian Hossain & James Phillips & Thomas Legrand, 2007. "The impact of childhood mortality on Fertility in six rural Thanas of Bangladesh," Demography, Springer;Population Association of America (PAA), vol. 44(4), pages 771-784, November.
  2. Juhn, Chinhui & Kalemli-Ozcan, Sebnem & Turan, Belgi, 2009. "HIV and Fertility in Africa: First Evidence from Population Based Surveys," IZA Discussion Papers 4473, Institute for the Study of Labor (IZA).
  3. Valente, C., 2010. "Access to Abortion, Investments in Neonatal Health, and Sex-Selection: Evidence from Nepal," Health, Econometrics and Data Group (HEDG) Working Papers 10/15, HEDG, c/o Department of Economics, University of York.
  4. Rodrigo R. Soares, 2005. "Mortality Reductions, Educational Attainment, and Fertility Choice," American Economic Review, American Economic Association, vol. 95(3), pages 580-601, June.
  5. Jane G. Fortson, 2009. "HIV/AIDS and Fertility," American Economic Journal: Applied Economics, American Economic Association, vol. 1(3), pages 170-94, July.
  6. Sebnem Kalemli-Ozcan & Belgi Turan, 2010. "HIV and Fertility Revisited," NBER Working Papers 16115, National Bureau of Economic Research, Inc.
  7. Luis Angeles, 2010. "Demographic transitions: analyzing the effects of mortality on fertility," Journal of Population Economics, Springer;European Society for Population Economics, vol. 23(1), pages 99-120, January.
  8. Anne Case & Christina Paxson, 2009. "The Impact of the AIDS Pandemic on Health Services in Africa: Evidence from Demographic and Health Surveys," NBER Working Papers 15000, National Bureau of Economic Research, Inc.
  9. Matthias Doepke, 2005. "Child mortality and fertility decline: Does the Barro-Becker model fit the facts?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 18(2), pages 337-366, 06.
  10. Wolpin, Kenneth I, 1984. "An Estimable Dynamic Stochastic Model of Fertility and Child Mortality," Journal of Political Economy, University of Chicago Press, vol. 92(5), pages 852-74, October.
  11. John Donohue & Steven Levitt, 2000. "The Impact of Legalized Abortion on Crime," NBER Working Papers 8004, National Bureau of Economic Research, Inc.
  12. Sah, R.K., 1989. "The Effects Of Mortality Changes On Fertility Choice And Individual Welfare: Some Theoretical Predictions," Papers 599, Yale - Economic Growth Center.
  13. Adrienne M. Lucas, 2011. "The Impact of Malaria Eradication on Fertility," Working Papers 11-20, University of Delaware, Department of Economics.
  14. Alwyn Young, 2005. "The Gift of the Dying: The Tragedy of AIDS and the Welfare of Future African Generations," The Quarterly Journal of Economics, Oxford University Press, vol. 120(2), pages 423-466.
  15. Becker, Gary S & Lewis, H Gregg, 1973. "On the Interaction between the Quantity and Quality of Children," Journal of Political Economy, University of Chicago Press, vol. 81(2), pages S279-88, Part II, .
  16. repec:gdm:wpaper:1806 is not listed on IDEAS
  17. Ben-Porath, Yoram, 1976. "Fertility Response to Child Mortality: Micro Data from Israel," Journal of Political Economy, University of Chicago Press, vol. 84(4), pages S163-78, August.
  18. Sebnem Kalemli-Ozcan, 2012. "AIDS, “reversal” of the demographic transition and economic development: evidence from Africa," Journal of Population Economics, Springer;European Society for Population Economics, vol. 25(3), pages 871-897, July.
  19. Cristian Pop-Eleches, 2006. "The Impact of an Abortion Ban on Socioeconomic Outcomes of Children: Evidence from Romania," Journal of Political Economy, University of Chicago Press, vol. 114(4), pages 744-773, August.
  20. David Canning, 2006. "The Economics of HIV/AIDS in Low-Income Countries: The Case for Prevention," Journal of Economic Perspectives, American Economic Association, vol. 20(3), pages 121-142, Summer.
  21. Claus C Pörtner, 2010. "Sex Selective Abortions, Fertility and Birth Spacing," Working Papers UWEC-2010-04-R, University of Washington, Department of Economics, revised Aug 2010.
  22. Skordis, Jolene & Nattrass, Nicoli, 2002. "Paying to waste lives: the affordability of reducing mother-to-child transmission of HIV in South Africa," Journal of Health Economics, Elsevier, vol. 21(3), pages 405-421, May.
  23. Alwyn Young, 2007. "In sorrow to bring forth children: fertility amidst the plague of HIV," Journal of Economic Growth, Springer, vol. 12(4), pages 283-327, December.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:wil:wileco:2011-13. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Stephen Sheppard)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.