Do migrants send remittances as a way of self-insurance?

Catia Batista and Janis Umblijs

NOVAFRICA Working Paper Series from Universidade Nova de Lisboa, Nova School of Business and Economics, NOVAFRICA

Abstract: How do risk preferences affect migrant remittance behaviour? Examination of this relationship has only begun to be explored. Using a tailored representative survey of 1500 immigrants in the Greater Dublin Area, Ireland, we find a positive and significant relationship between risk aversion and migrant remittances. 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. The evidence we obtain is consistent with a purchase of self-insurance motive to remit in that we also find support for more remittances being sent by risk-averse immigrants who face higher wage risks and to individuals with more financial resources.

Keywords: Migration; risk aversion; remittances; self-insurance (search for similar items in EconPapers)
JEL-codes: D81 F22 F24 J15 J61 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2014
New Economics Papers: this item is included in nep-ias and nep-mig
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Related works:
Journal Article: Do migrants send remittances as a way of self-insurance? (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:unl:novafr:wp1402

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