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

Albert Bollard, David Mckenzie (), Melanie Morten and Hillel Rapoport

No 5113, Policy Research Working Paper Series from The World Bank

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.

Keywords: Population Policies; Remittances; Debt Markets; International Migration; Access&Equity in Basic Education (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev and nep-hrm
Date: 2009-11-01

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Related works:
Working Paper: Remittances and the Brain Drain Revisited: The microdata show that more educated migrants remit more (2009)
Working Paper: Remittances and the Brain Drain Revisited: The Microdata Show That More Educated Migrants Remit More (2009)
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