A Model of Foreign-Born Transfers: Evidence from Canadian Micro Data

Don DeVoretz and Florin Vadean

No 1714, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper models financial transfers outside the household for both the Canadian-born and foreign-born Canadian populations in a traditional expenditure framework. Using survey data we estimate transfer functions as part of a larger expenditure system and calculate Engel elasticities for remittances by both the Canadian and foreign-born populations. We conclude that transfers outside the household are a normal good for recent Asian immigrants and a luxury good for all other immigrants and Canadians. Immigrant transfers upon arrival are greater than Canadian-born transfers indicating a strong entry effect. Assimilation or convergence to the Canadian-born norm over time is however very slow. We also find evidence of negative foreign-born transfers as sending country households remit to Canadian immigrant households. Finally, all foreign-born groups generally consider remittances to charitable organizations a greater necessity than inter-household transfers.

Keywords: immigration; remittances (search for similar items in EconPapers)
JEL-codes: J63 O15 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2005-08
New Economics Papers: this item is included in nep-dev
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Citations: View citations in EconPapers (24)

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