Asymmetric Information and Remittances: Evidence from Matched Administrative Data

Thomas Joseph, Yaw Nyarko and Shing-Yi Wang

American Economic Journal: Applied Economics, 2018, vol. 10, issue 2, 58-100

Abstract: Using new large-scale, administrative data matching remittances and monthly payroll disbursals, we demonstrate how migrants' earnings in the United Arab Emirates affect their remittances. We consider several types of income changes: Ramadan, weather shocks, a labor reform and returns to time in the UAE. We demonstrate that two key characteristics of the income changes that affect the income elasticity of remittances are the observability of the income and whether the income change is positive or negative. The results are consistent with a private information model where remittances are viewed as payments in an income-sharing contract.

JEL-codes: D82 F24 I31 J31 J61 O15 (search for similar items in EconPapers)
Date: 2018
Note: DOI: 10.1257/app.20160150
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Working Paper: Asymmetric Information and Remittances: Evidence from Matched Administrative Data (2015)
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