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Transfer Behaviour in Migrant Sending Communities

  • Steiner, Susan
  • Chakraborty, Tanika
  • Mirkasimov, Bakhrom

Private transfers between households in developing countries have been extensively studied and shown to be economically important as mechanisms of risk sharing and income redistribution. We argue that migration and remittances have the potential to modify the prevalent transfer behaviour in migrant-sending communities. A priori, it is indeterminate whether migration and remittances strengthen or weaken the degree of private transfers. We use data from a detailed household survey in Kyrgyzstan, designed by the authors, to empirically study the effect of migration and remittances on both monetary and non-monetary transfers. We find that migrant households provide more monetary transfers and receive more non-monetary transfers compared with non-migrant households, particularly in rural areas. Furthermore, we find that the transfer of non-monetary help, in the form of labour, takes place only in the presence of labour constraints within the household. We argue that distinguishing between the nature of transfers, monetary or non-monetary, is important in the context of the vast literature investigating private transfer motives.

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File URL: http://econstor.eu/bitstream/10419/79713/1/VfS_2013_pid_176.pdf
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Paper provided by Verein für Socialpolitik / German Economic Association in its series Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order with number 79713.

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Date of creation: 2013
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Handle: RePEc:zbw:vfsc13:79713
Contact details of provider: Web page: http://www.socialpolitik.org/
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  1. Stefan Dercon & Joachim De Weerdt, 2002. "Risk-sharing networks and insurance against illness," CSAE Working Paper Series 2002-16, Centre for the Study of African Economies, University of Oxford.
  2. 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.
  3. McKenzie, David & Gibson, John & Stillman, Steven, 2006. "How Important Is Selection? Experimental vs. Non-Experimental Measures of the Income Gains from Migration," IZA Discussion Papers 2087, Institute for the Study of Labor (IZA).
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  8. Pedro Albarran & Orazio P. Attanasio, 2003. "Limited Commitment and Crowding out of Private Transfers: Evidence from a Randomised Experiment," Economic Journal, Royal Economic Society, vol. 113(486), pages C77-C85, March.
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  11. Kevin E. Staub & Rainer Winkelmann, 2013. "Consistent Estimation Of Zero‐Inflated Count Models," Health Economics, John Wiley & Sons, Ltd., vol. 22(6), pages 673-686, 06.
  12. Cox, Donald, 1987. "Motives for Private Income Transfers," Journal of Political Economy, University of Chicago Press, vol. 95(3), pages 508-46, June.
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  14. Cox, Donald & Jimenez, Emmanuel, 1998. "Risk Sharing and Private Transfers: What about Urban Households?," Economic Development and Cultural Change, University of Chicago Press, vol. 46(3), pages 621-37, April.
  15. Mark Rosenzweig & Andrew D. Foster, 1995. "Imperfect Commitment, Altruism, and the Family: Evidence from Transfer Behavior in Low-Income Rural Areas," Home Pages _075, University of Pennsylvania.
  16. 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.
  17. Lena Giesbert & Susan Steiner & Mirko Bendig, 2011. "Participation in Micro Life Insurance and the Use of Other Financial Services in Ghana," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 78(1), pages 7-35, 03.
  18. Ethan Ligon & Jonathan P. Thomas & Tim Worrall, 2002. "Informal Insurance Arrangements with Limited Commitment: Theory and Evidence from Village Economies," Review of Economic Studies, Oxford University Press, vol. 69(1), pages 209-244.
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