The Transfer of the Remittance Fee from the Migrant to the Household

Akira Shimada ()
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Akira Shimada: Nagasaki University, Postal: Faculty of Economics, Nagasaki University, 4-2-1, Katafuchi, Nagasaki City, 850-8506, Japan

Journal of Economic Integration, 2010, vol. 25, pages 613-625

Abstract:

This paper discusses the problem of increasing remittances. It is often argued that the remittance fee needs to be lowered to increase remittances. We show that remittances become larger by increasing the receiving fee whereas they become larger by reducing the sending fee. We also show that, by transferring the sending fee from the migrant to the household, remittances become larger than those without the transfer. It is shown that for this purpose the home country’s government can collect the sending fee from the household as taxes, and to pay it to the migrant as a subsidy.

Keywords: Migrant; Household; Transfer; Remittance Fee; Altruism (search for similar items in EconPapers)
JEL-codes: D64 F22 F24 (search for similar items in EconPapers)
Date: 2010
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Persistent link: http://EconPapers.repec.org/RePEc:ris:integr:0518

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