Do Migrants Send Remittances as a Way of Self-Insurance? Evidence from a Representative Immigrant Survey

Catia Batista and Janis Umblijs ()
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Janis Umblijs: Ragnar Frisch Centre for Economic Research, Oslo, Norway

No 2014005, Norface Discussion Paper Series from Norface Research Programme on Migration, Department of Economics, University College London

Abstract: Do migrants send remittances as a way of obtaining insurance? While this motive is theoretically suggested in the literature, the question of identifying this relationship empirically has only begun to be explored. Using a unique representative survey of 1500 immigrants in the Greater Dublin Area, Ireland, we find a positive and signicant relationship between risk aversion and remittance behavior. Risk-averse individuals are more likely to send remittances home and are, on average, likely to remit a higher amount, after controlling for a broad range of individual and group characteristics. Consistent with a purchase of self insurance motive to remit, we also provide evidence of more remittances sent by risk averse immigrants facing higher wage risks and remitting to individuals with more financial resources.

Keywords: Migration; Risk Aversion; Remittances; Insurance (search for similar items in EconPapers)
JEL-codes: D81 F22 F24 J01 J08 J15 J61 (search for similar items in EconPapers)
Date: 2014-02
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Citations: View citations in EconPapers (8)

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Related works:
Working Paper: Do Migrants Send Remittances as a Way of Self-Insurance? Evidence from a Representative Immigrant Survey (2014)
Working Paper: Do Migrants Send Remittances as a Way of Self-Insurance? Evidence from a Representative Immigrant Survey (2014)
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