Remittances and Return Migration

31 Pages Posted: 13 Nov 2011

See all articles by William Collier

William Collier

University of Kent - Department of Economics

Matloob Piracha

University of Kent - Department of Economics; IZA Institute of Labor Economics

Teresa Randazzo

University of Kent - Canterbury Campus

Abstract

This paper utilises survey data of return migrants to analyse the determinants of remittances sent while the migrants were abroad. We approach our research question from the perspective of three sending countries in the Maghreb, namely Algeria, Morocco and Tunisia. We investigate the remittance behaviour using the migrants’ conditions before migration as well as during the migration experience. Using a two-part model, we show that the decision to remit and the amount remitted depend on a combination of different migrant characteristics as well as the duration and form of migration. We also consider if the remittance behaviour is dependent on the type of return: decided or compelled. We show that those who decided to return have a higher probability to remit for investment purposes and remit more as the time spent abroad increases.

Keywords: remittances, return migration, Maghreb countries

JEL Classification: F22, F24

Suggested Citation

Collier, William and Piracha, Matloob and Randazzo, Teresa, Remittances and Return Migration. IZA Discussion Paper No. 6091, Available at SSRN: https://ssrn.com/abstract=1958747 or http://dx.doi.org/10.2139/ssrn.1958747

William Collier (Contact Author)

University of Kent - Department of Economics ( email )

Keynes College
Kent, CT2 7NP
United Kingdom

Matloob Piracha

University of Kent - Department of Economics ( email )

Keynes College
Kent, CT2 7NP
United Kingdom

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Teresa Randazzo

University of Kent - Canterbury Campus ( email )

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