The resilience of migrant money: how gender,generation and class shape family remittances in Peruvian migration

Scholars and policy makers have argued that because altruism drives remittance sending, migrant money is more resilient to uncertainty than other capital flows. In this article, I question this assumption through ethnographic examination of remittance sending by Peruvian migrant families. When in their lives do Peruvian migrants start to remit? Who are the recipients? What is the purpose of their remittances? How long do they last and why do they stop? I argue that, to answer these questions, we need to investigate how migrants make remittance commitments to different household members, how these attribute value to the remittances and how this value becomes the object of negotiation and contestation. The findings indicate that remittances reinforce existing relations of gender, generation and class in Peruvian society and suggest that while short‐lived remittances are based on contractual commitments and driven by altruism, long‐term remittances are based on emotional commitments and driven by both non‐utilitarian and utilitarian motives.     

On the Use of Differing Money Transmission Methods by Mexican Immigrants1

Interest in the factors shapin migrants’use of a given money transmittal method has recently intensifiled following researchers’agreement on the often inadequate infrastructure surrounding remittances transfers. This concern has also captured the attention of government officials, who appear more eager to promote more efficient and safe transfers of emigrant's earnings given the otential that remittances hold for increasing resources at the disposal of receiving nations. This study uses data from Mexican immigrants who have resided in the United States to examine the various factors that shape migrants’use of the various methods to remit earnings to Mexico. We find, not surprisingly, that accessibility factors play a key role in explaining migrants’use of the various moneytransfer mechanisms. Migrants are less likely to use banks and more likely to use nonbank money‐transmitting services when they lack immigration documents. Additionally, migrants’awareness of alternative remitting methods, either through educational attainment, skill level, or networks of friends and family in the city to which they migrated, makes them more likely to use banks relative to the more expensive nonbank money‐transmittin mechanisms. In contrast, the use of informal money transfer mechanisms (cash in the mail and hand‐carried transfers) is more likely among workers with “less regular” employment ‐ such as self‐employed and specific‐task workers, more newly arrived migrants, and migrants remitting to rural and poorer areas.     

Come Back or Stay? Spend Here or There? Return and Remittances: The Case of Moldova

This paper examines the determinants and consequences of temporary and permanent migration from the perspective of migrant source countries. Based on a large and detailed household dataset on migration in the Republic of Moldova, the most important factors that influence a respective migrant’s decision whether to return to the home country or to stay abroad for good are presented first. Second, the remittance behaviour of temporary and permanent migrants is analysed to investigate how developing countries benefit from either type of migration. The results indicate that the most important determinants of permanent migration relate to the economic conditions at home and abroad, as well as to the legal status of a migrant in the host country. Furthermore, economic and political frustration plays an important role in the decision of permanent migrants not to come back. On the contrary, family ties as measured by the number of close family members at home act as a pull factor for migrant return. Interestingly, permanent migrants use source country networks that differ from those of temporary migrants, indicating that the return decision of individuals is influenced by the decision of their migrant peers. Concerning remittances, the results reveal that, in absolute terms, temporary migrants remit around 30 per cent more than their permanent counterparts. This outcome is surprising, because temporary migrants often reside in countries where wages are much lower. Overall, the findings indicate that when compared to permanent migration, temporary migration is favourable for developing countries, as it fosters not only repatriation of skills, but also higher remittances, and home savings.     

Migrant remittances and development

Income remittances from migrant workers to countries of origin are central to the links between migration and development. Multiple, complex, and diverse forces, however, affect the flow of remittances. Factors may include the number and characteristics of workers abroad; levels and types of economic activity in sending and host countries; differential wage, exchange, and interest rates; political risk; and the facility for transferring funds. These factors then shape personal decisions made by migrants and their families regarding remittances, after which any longer-range development consequences of remittances may result. Debate rages over the effects of remittances on development. This paper therefore reviews papers on the measurement of remittances and gives recent findings on the volume and direction of flows. It continues by considering evidence on the uses of remittances and their consequences for development, and closes with a discussion of policy options for increasing and channeling remittance flows.     

Remittances and the Maintenance of Dual Social Worlds: The Transnational Working Lives of Migrants in Greater London

Most research on remittances focuses on economic motivations, with little emphasis on the social contexts in which the remittance economy operates. Through an analysis of in‐depth interviews with migrant workers in a London hotel and hospital, we examine how migrants’ familial and social relationships in both sending and receiving countries inform the decision to send remittances. We suggest that remittances are a mechanism through which migrants are able to fulfil multiple obligations to families and places of origin, while also enhancing their own economic status and future. First, satisfying the cultural expectation of sending remittances helps migrants maintain their social worlds at “home”. Second, we observed that both positive and negative changes in power and resources influence the decision to send remittances by motivating migrants to invest in their social position in either their home or receiving country. In sum, we argue that the migrants’ social experience in the United Kingdom might be just as predictive of remittance behaviour as their economic and social status in the country of origin. We, therefore, call for a need to move beyond the often one‐sided concern with development by concentrating on the overlapping social worlds of migrants.     

Migration,development and remittances in rural Mexico

The argument is that remittances to Mexico from migrants in the US contribute to household prosperity and lessen the balance of payments problem. The purpose of this article is to provide an overview of the incentives and constraints to development and individual economic well-being in rural Mexico. Examination is made of the financial amount of remittances, the use of remittances, the impact on development of remittances, models of migration, and migration historically. The viewpoint is that migration satisfies labor needs in developed countries to the detriment of underdeveloped countries. $2 billion a year are sent by illegal migrants from the US to Mexico. This sum is 4 times the net earning of Mexico's tourist trade. 21.1% of the Mexican population depend in part on money sent from the US. 79% of illegal migrants remitted money to relatives in Jalisco state. 70% of migrant families receive $170/month. In Guadalupe, 73% of families depended on migrant income. In Villa Guerrero, 50% of households depended on migrant income. Migrant income supported 1 out of 5 households in Mexico. Money is usually spent of household subsistence items. Sometimes money is also spent on community religious festivals, marriage ceremonies, and education of children or improved living conditions. Examples are given of money being used for investment in land and livestock. Migration affects community solidarity, and comparative ethic, and the influence on others to migrate. Employment opportunities are not expanded and cottage and community industries are threatened. Land purchases did not result in land improvements. Migration models are deficient. There is a macro/micro dichotomy. The push-and-pull system is not controllable by individual migrants. The migration remittance model is a product of unequal development and a mechanism feeding migration. Mexican migration has occurred since the 1880's; seasonal migration was encouraged. There was coercion to return to Mexico after the economic recession of World War I; the door was firmly closely during the Great Depression of 1929-35. The 1980 estimates of illegal Mexican migrants totaled 2-9 million, which is the largest flow in the world. US industrial presence and Mexican development have reinforced migration flows. Regional and international capitalist requirements govern migration.     

Factors determining migrant remittances: the case of Greece

"In this study we review the literature regarding the theory and the empirical evidence regarding migrants' remittance behavior, and we examine the flow and determinants of remittances from Greek migrants for the period 1961 to 1991. The main body of data is for remittances to Greece from Germany, but for some years data are available for remittances from Belgium and Sweden as well. The objective of this study is to test the significance of certain factors in terms of their effects on remittances to Greece. These factors are the migrant's income, the migrant's family income, the rate of unemployment, the rate of interest, the exchange rate, and the rate of inflation. The study attempts to see if these factors have had any effect on the volume of remittances. It also attempts to see if there are any structural changes during this period that affect migrants' propensity to remit."     

Beyond control? The mechanics and dynamics of ‘informal’ remittances between Europe and Africa

Abstract Policy making usually assumes that the best way to harness migrant remittances for development is by shifting them into the regulated money transfer sector. However, much research evidence concludes that alternative methods are often cheaper and more reliable, accessible and convenient. In this article, we explore this tension between policy objectives and evidence. Based on a review of remittance mechanisms in seven sub‐Saharan African countries, we question the validity of the distinction between ‘formal’ and ‘informal’ remittances. We conclude that the formalization of remittance systems should not be approached as a regulatory task carried out from the top down, but as a bottom‐up evolutionary and organic process that should be encouraged. We suggest that the current regulatory thrust in this area is likely to be counterproductive, since it risks undermining the many vibrant institutions emerging through the movement of migrants and their money, together with their potential to enhance much needed economic and social development.     

Migrants' capacity as actors of development: do skills matter for economic and social remittances?

Highly skilled migrants are presumably in a better position than less skilled ones to contribute to development in their countries of origin, largely by way of economic and social remittances. In this article, we use unique data on first‐generation migrants in the Netherlands to test how economic and social remittances differ by skill level. We find that the highly skilled are more likely to remit, to remit larger amounts and to give advice on education, jobs and health matters. Thus, we identify the highly skilled as having a greater capacity to affect development than have migrants of other skill levels. However, nuances exist with respect to this overall result. We illustrate that the low and medium skilled also show some capacity to affect economic development and that a medium skill level is sufficient to be in a position to transfer significantly more knowledge and skills.     

How does Conflict in Migrants’ Country of Origin Affect Remittance‐Sending? Financial Priorities and Transnational Obligations Among Somalis and Pakistanis in Norway

This article examines how conflict in the country of origin interacts with other factors in shaping migrants’ remittance‐sending practices. Our data come from a survey of 10 immigrant groups in Norway and semi‐structured interviews with Somali and Pakistani remittance‐senders and receivers. First, we conduct an in‐depth comparison to explore the differences in how Somali and Pakistani migrants decide about remittance‐sending. Second, we use survey data on all 10 migrant groups to evaluate whether the differences that are not explained by socioeconomic characteristics, may partly reflect whether or not there is ongoing conflict in the country of origin. In our analyses we differentiate between (1) the effect of migrants’capacity to remit and their prioritizing of local and transnational expenditures, and (2) the impact of state collapse and absence of human security on migrants’ and refugees’desire to remit. We find that ongoing conflict in the country of origin exerts an upward pressure on remittance‐sending.     

Darfurian Livelihoods and Libya: Trade,Migration, and Remittance Flows in Times of Conflict and Crisis1

Labor migration and commerce between Sudan and Libya have long been features of livelihoods in Darfur. This paper describes the importance of historical trade and migration links between Darfur and Libya, and provides a background to the political and economic situation in Libya which has influenced opportunities for Sudanese migrant workers. A case study of the situation of the Darfurian migrants in Kufra (an oasis and transnational trade hub in southern Libya) illustrates how the recent Darfur conflict has affected migration patterns from Darfur and remittance flows in the opposite direction. Official estimates of Darfurian migrant workers in Libya were unavailable but were estimated to be between 150,000 and 250,000. The closure of the national border between Sudan and Libya in May 2003, largely a result of insecurity in Darfur, stopped the traffic of migrant workers between northern Darfur and southern Libya (which prevented the onward travel to Sudan of several thousand migrants in Kufra), and curtailed the well‐established trade routes, communications, and remittance flows. The current limited economic prospects for migrant workers in Libya, combined with the threat of detention, difficulties of return to Sudan, and loss of contact with and uncertainty about the fate of their families in Darfur, have created a sense of despair among many Darfurians. The paper concludes with a series of recommendations to improve the conditions of the Darfurian migrants in Libya, including an amnesty for illegal migrants, and also to ease the travel of migrants, promote communications between Libya and Darfur, and support the flow of remittances.     

Migrant Remittances and Household Division: The Case of Nang Rong,Thailand

Using data from the Nang Rong Projects social survey (N = 4,989), this work examines the effect of migrant remittances on household splits in an agrarian district of Thailand, a developing country experiencing tremendous economic, demographic, and social transformations. Results show that remittances sent from migrants (especially female migrants) to their origin households affect changes in household affiliation. Findings are consistent with a household allocation model, whereby money sent by migrant siblings significantly affects the movement of the migrant’s sisters and their husbands into a new household. Results suggest that remittances are a significant determinant of household nucleation, especially in the latter stages of the Thai household life cycle. Results also suggest that rural Thais still follow traditional postnuptial residence patterns.     

Remittances and Other Financial Flows to Developing Countries

Official estimates of migrants’ remittances are around US$100 billion annually, with some 60 per cent going to developing countries. Any policy making use of migrants as a development resource must understand the size and allocation of remittances, and the roles played by migrants and their communities in the remittance process. This paper examines the flows of remittances in relation to other financial flows to developing countries. The examination is based on data available from official statistics. As discussed in the paper, remittances by unofficial channels are significant by all accounts so the remittance amounts reported here are quite conservative. The paper shows that annual remittances to developing countries have more than doubled between 1988 and 1999. Viewed over the last decade, remittances have been a much larger source of income for developing countries than official development assistance (ODA). The gap is increasing, since ODA has been falling while remittances have increased. Furthermore, remittances appear to be a much more stable source of income than private flows, both direct and portfolio, which tend to be more volatile and flow into a limited set of countries. Remittances to developing countries go first and foremost to lower middleincome and low–income countries. Lower middle–income countries receive the largest amounts, but remittances constitute a much higher share of total international flows to low–income countries. Of the ten countries receiving most remittances, two are low–income (India and Pakistan); six are lower middle–income (Philippines, Turkey, Egypt, Morocco, Thailand, and Jordan); and two are upper middle–income (Mexico and Brazil). Sub–Saharan Africa received some 8 per cent of remittances in 1980, but only some 4 per cent in 1999. South Asia’s share also declined from what was already a relatively high 34 to 24 per cent. Those who gained most were Eastern Europe and Central Asia, South and Central America, and the Caribbean, which increased their share of global remittances.     

Fortune,Risk, and Remittances: An Application of Option Theory to Participation in Village‐Based Migration Networks1

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The impact of labor migration on the Jordanian economy

"This article considers the effects of labor migration on the economy of the East Bank of the Hashemite Kingdom of Jordan. The article is presented in two sections. The first attempts to quantify the external migrant flows which impinge on the Jordanian labor market. The second section presents a theoretical model of the macroeconomic impact on output and employment of flows of migrants and migrants' remittances and an empirical analysis of the effects on the agricultural and construction sectors."     

Remittance behaviours of foreigners in Italy

This article investigates the determinants of remittance behaviours among foreigners in Italy and intends to gain a better understanding of the temporal pattern of remittances. The analysis is based on data from the 2009 “Italian Statistics on Income and Living Conditions of Households with Foreigners”. The decisions on whether to remit and how much to remit are separately yet simultaneously estimated using a zero‐inflated beta regression model. The findings reveal that remittances are driven by a mix of altruistic and self‐interest motives that may persist for many years. Many covariates included in the model have a different effect on the propensity to remit and on the relative amount of remittances. We find some evidence that the average propensity to remit follows an M‐shaped trajectory over time. However, the model specification including only time and time squared proves that the inverted‐U shape trajectory, well‐established in the literature, still remains a better choice in terms of parsimoniousness and flexibility. Among those who remit, time since migration does not have any significant effect on the normalized amount remitted.     

“Here One Moment… and Gone the Next?” Remittance as a Social Visibility Tool

Human labor is as much an export as any good. Remittances are a critical source of income for left‐behind families and communities. Transnational labor migrants often describe themselves as ‘invisible’: neither present in the lives of left‐behind families nor members of the receiving community. Building on social remittances literature, we argue that remittances serve as a remedy for this ‘invisibility.’ Through analysis of interviews with 26 temporary labor migrants from 11 countries resident in Israel, we find remittances can render migrants visible to transnational families and provide identity benefits to labor migrants. If visibility benefits decline because of familial role changes, reduced value as a remitter, cost exceeding benefits or because contracting partners change, remittance practices will change. Contrary to previous literature, our findings show that remittances decisions are dynamic, revealing why remittances practices change and even cease. Findings have implications for understanding the multibillion‐dollar remittances industry and immigrant incorporation.     

Enhancing the capabilities of emigration countries to protect men and women destined for low-skilled employment: the case of the Philippines

This study examined policies in receiving countries, evaluated their effectiveness in protecting low skilled Filipino migrant workers, and discusses the potential for quantifying and objectifying labor migrant gains or losses. Data were obtained from focus groups among 10 technical managers of the Philippine Overseas Employment Administration and interviews with 10 policy-makers in order to establish a hierarchy of aims in labor migration and policy indicators. The aims are identified as good jobs abroad, an orderly process, efficient and fair recruitment, and easy transfers of remittances. Findings are that Philippine policies facilitate remittance transfers. Government was least effective in ensuring orderliness. Government was fairly effective in ensuring fairness and efficiency and ensuring good jobs overseas. It succeeded the most in ensuring that nationals can easily transfer their earnings. Allocation data reveal that more resources were expended on searching for good jobs and least on fairness and efficiency. Remittances increased after mandatory remittances were ended as imposed by the Marcos regime. De-skilling often resulted from overseas employment, but rehired workers received better pay on their second and third assignments. This research was exploratory and more research is needed for developing sensitive indicators and refining the process of evaluating key government policies. The Philippine Development Policy that encourages labor migration and protection of overseas workers is a necessity during the ongoing Asian economic crisis.     

Workers’ Remittances to India: An Examination of Transfer Cost and Efficiency

Regarding the time efficiency of remittance transfer channels to India, the evidence suggests that traditional banking instruments are relatively inefficient as compared to the new information technology‐enabled products. Transfer arrangement of the Indian banks with overseas exchange houses has reduced the settlement cycle and the cost. Both the banks and money transfer operators (MTOs) are able to keep the transaction cycle low through the use of information technology‐enabled formats. Given that the average cost curve of the banks is located to the right of the average cost curve of the MTOs, greater potential exists for the improvement in overall efficiency of the two entities, particularly through the sharing of messaging and the access and disbursement networks to reduce the overhead cost. The estimates of error correction model reveal that the transaction fee and payment infrastructure are significant determinants of remittance flows, underscoring the scope of policy measures in influencing remittance inflows. The estimates indicate that over the medium to long‐term horizon, transaction cost emerges as the most dominant variable explaining the variation in remittances. The payments infrastructure also explains about 10 per cent variation in remittances over the medium‐term. The impulse response analysis further reveals that the favourable shocks to transaction fees and the payments infrastructure cause steady improvement in remittance inflows over the medium‐term horizon, thus underlining the importance of cost and efficiency in affecting the workers’ remittances.