Remittances, savings and return migration under uncertainty
Matthieu Delpierre and
IZA Journal of Migration and Development, 2014, vol. 3, issue 1, 1-43
Recent empirical evidence links migrant remittances, savings and return migration, and stresses the inaccuracy of return migration plans. This paper presents a model of endogenous remittances, savings and return decisions under uncertainty. In our framework, migrants make remittance and saving decisions at an early stage of migration, when their long term economic performance in the host country is still uncertain. Over time, information about professional prospects is acquired, and conditionally on past decisions, migrants adjust their return plans. We show that when migrants expect large gains from migration and face relatively low wage risks in the host country, they tend to remit less, save more and are less likely to return migrate. These results are in line with recent empirical evidence and provide a rationale for the support by relatives in the sending country of low-skill, illegal migration. JEL codes D13; D80; JE Copyright Delpierre and Verheyden; licensee Springer. 2014
Keywords: Remittances; Savings; Risk; Return migration (search for similar items in EconPapers)
JEL-codes: D13 D80 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
Working Paper: Remittances, savings and return migration under uncertainty (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:spr:izamig:v:3:y:2014:i:1:p:1-43:10.1186/s40176-014-0022-7
Ordering information: This journal article can be ordered from
Access Statistics for this article
IZA Journal of Migration and Development is currently edited by Amelie F. Constant, Denis Fougère and Tommaso Colussi
More articles in IZA Journal of Migration and Development from Springer, Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA)
Bibliographic data for series maintained by Sonal Shukla ().