Estimating the Determinants of Remittances Originating from U.S. Households using CPS Data

Nicole B. Simpson () and Chad Sparber ()
Additional contact information
Nicole B. Simpson: Colgate University
Chad Sparber: Colgate University

No 12480, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: The U.S. is the largest source country of remittances with an outflow of more than $70 billion estimated for 2016 (according to data from the World Bank). This paper is the first to use Current Population Survey (CPS) data to estimate the determinants of remittances originating from the United States for a diverse set of approximately 3,800 households with at least one foreign-born worker. We employ a gravity model examining the role of various push, pull, and distance factors. Most notably, higher household earnings push monetary transfers abroad: We estimate an average earnings elasticity in the range of 0.20-0.30. Remittances are more responsive to earnings in households with more adult women relative to men.

Keywords: remittances; immigration (search for similar items in EconPapers)
JEL-codes: F24 J61 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2019-07
New Economics Papers: this item is included in nep-lab and nep-mig
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Citations: View citations in EconPapers (2)

Published - published in: Eastern Economic Journal, 2020, 46 (1), 161-189

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Journal Article: Estimating the Determinants of Remittances Originating from US Households Using CPS Data (2020)
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