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Remittances and the brain drain revisited : the microdata show that more educated migrants remit more

Author

Listed:
  • Bollard, Albert
  • McKenzie, David
  • Morten, Melanie
  • Rapoport, Hillel
Abstract
Two of the most salient trends surrounding the issue of migration and development over the past two decades are the large rise in remittances, and an increased flow of skilled migration. However, recent literature based on cross-country regressions has claimed that more educated migrants remit less, leading to concerns that further increases in skilled migration will hamper remittance growth. This paper revisits the relationship between education and remitting behavior using microdata from surveys of immigrants in 11 major destination countries. The data show a mixed pattern between education and the likelihood of remitting, and a strong positive relationship between education and the amount remitted conditional on remitting. Combining these intensive and extensive margins gives an overall positive effect of education on the amount remitted. The microdata then allow investigation as to why the more educated remit more. The analysis finds that the higher income earned by migrants, rather than characteristics of their family situations, explains much of the higher remittances.

Suggested Citation

  • Bollard, Albert & McKenzie, David & Morten, Melanie & Rapoport, Hillel, 2009. "Remittances and the brain drain revisited : the microdata show that more educated migrants remit more," Policy Research Working Paper Series 5113, The World Bank.
    • Handle: RePEc:wbk:wbrwps:5113
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    References listed on IDEAS

    as
    1. Faini, Riccardo, 2006. "Remittances and the Brain Drain," CEPR Discussion Papers 5720, C.E.P.R. Discussion Papers.
    2. World Bank, 2008. "The Migration and Remittances Factbook 2008," World Bank Publications - Books, The World Bank Group, number 6383.
    3. Cox, Donald & Eser, Zekeriya & Jimenez, Emmanuel, 1998. "Motives for private transfers over the life cycle: An analytical framework and evidence for Peru," Journal of Development Economics, Elsevier, vol. 55(1), pages 57-80, February.
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    5. Yoko Niimi & Caglar Ozden & Maurice Schiff, 2010. "Remittances and the Brain Drain: Skilled Migrants Do Remit Less," Annals of Economics and Statistics, GENES, issue 97-98, pages 123-141.
    6. Rapoport, Hillel & Docquier, Frederic, 2006. "The Economics of Migrants' Remittances," Handbook on the Economics of Giving, Reciprocity and Altruism, in: S. Kolm & Jean Mercier Ythier (ed.), Handbook of the Economics of Giving, Altruism and Reciprocity, edition 1, volume 1, chapter 17, pages 1135-1198, Elsevier.
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    More about this item

    Keywords

    Population Policies; Remittances; Debt Markets; International Migration; Access&Equity in Basic Education;
    All these keywords.

    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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