Arbeitspapier

Remittances and the brain drain revisited: the microdata show that more educated migrants remit more

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Two of the most salient trends surrounding the issue of migration and development over the last two decades are the large rise in remittances, and an increased flow of skilled migration. However, recent literature based on cross-country regressions has claimed that more educated migrants remit less, leading to concerns that further increases in skilled migration will hamper remittance growth. We revisit the relationship between education and remitting behavior using microdata from surveys of immigrants in eleven major destination countries. The data show a mixed pattern between education and the likelihood of remitting, and a strong positive relationship between education and the amount remitted conditional on remitting. Combining these intensive and extensive margins gives an overall positive effect of education on the amount remitted. The microdata then allow investigation as to why the more educated remit more. We find the higher income earned by migrants, rather than characteristics of their family situations explains much of the higher remittances.

Language: Englisch

Bibliographic citation: Series: IZA Discussion Papers ; No. 4534

Classification: Wirtschaft
Economic Development: Human Resources; Human Development; Income Distribution; Migration
International Migration
Geographic Labor Mobility; Immigrant Workers

Subject: Remittances
migration
brain drain
education
Rücküberweisung (Migranten)
Brain Drain
Internationale Wanderung
Internationale Arbeitsmobilität
Bildungsniveau
Welt

Event: Geistige Schöpfung

(who): Bollard, Albert
McKenzie, David
Morten, Melanie
Rapoport, Hillel

Event: Veröffentlichung

(who): Institute for the Study of Labor (IZA)

(where): Bonn

(when): 2009

Handle: http://hdl.handle.net/10419/36282

Last update: 2025-03-10T11:42:33+0100

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Object type

Arbeitspapier

Associated

Bollard, Albert
McKenzie, David
Morten, Melanie
Rapoport, Hillel
Institute for the Study of Labor (IZA)

Time of origin

2009

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