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Cultural Differences in the Remittance Behaviour of Households: Evidence from Canadian Micro Data

Don DeVoretz and Florin Vadean ()

Studies in Economics from School of Economics, University of Kent

Abstract: This paper analyses the effect of cultural differences amongst ethnic groups on the remittance behaviour of native and immigrant households in Canada. In contrast to the New Economic of Labour Migration (NELM) literature that examines remittance motivation in the framework of extended family agreements, we embed remittances in a formal demand system, suggesting that they represent expenditures on social relations with relatives and/or friends and contribute to membership in social/religious organizations respectively. The results indicate strong ethnic group cultural differences in the remittance behaviour of recent Asian immigrant households and highlight the importance of differentiating with respect to cultural background when analysing the determinants of remittances.

Keywords: International Migration; Household Behaviour; Remittances (search for similar items in EconPapers)
JEL-codes: C31 D12 F22 F24 (search for similar items in EconPapers)
Date: 2008-11
New Economics Papers: this item is included in nep-mig and nep-soc
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