Temporary Migration and the Flow of Savings to the Source Country

Slobodan Djajić

Review of Development Economics, 2014, vol. 18, issue 1, 162-176

Abstract: The saving behavior of temporary migrants when the duration of their stay abroad is set by the immigration policy of the host country is studied in this paper. The focus is on the implied flow of savings back to the source country and how it depends on migration costs, duration of the work permit, and international wage, interest and price‐level differentials. The amount of time that migrants are allowed to work in the host country is shown to be a key policy variable that affects the flow of savings repatriated to the source country.

Date: 2014
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