The Purpose of Remittances - Evidence from Germany

26 Pages Posted: 15 Oct 2009

See all articles by Thomas K. Bauer

Thomas K. Bauer

Rhine-Westphalia Institute for Economic Research (RWI-Essen); University of Bochum - Faculty of Economics; IZA Institute of Labor Economics

Mathias Sinning

Australian National University (ANU) - Crawford School of Public Policy

Date Written: May 1, 2009

Abstract

This paper examines the purpose of remittances using individual data of migrants in Germany. Particular attention is paid to migrants’ savings and transfers to family members in the home country. Our findings indicate that migrants who intend to stay in Germany only temporarily have a higher propensity to save and save larger amounts in their home country than permanent migrants. A similar picture emerges when considering migrants’ payments to family members abroad. The results of a decomposition analysis indicate that temporary and permanent migrants seem to have different preferences towards sending transfers abroad, while economic characteristics and the composition of households in home and host countries are less relevant.

Keywords: International migration, savings, remittances

JEL Classification: F22, D12, D91

Suggested Citation

Bauer, Thomas K. and Sinning, Mathias, The Purpose of Remittances - Evidence from Germany (May 1, 2009). Ruhr Economic Paper No. 109, Available at SSRN: https://ssrn.com/abstract=1489462 or http://dx.doi.org/10.2139/ssrn.1489462

Thomas K. Bauer

Rhine-Westphalia Institute for Economic Research (RWI-Essen) ( email )

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HOME PAGE: http://www.rwi-essen.de

University of Bochum - Faculty of Economics ( email )

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IZA Institute of Labor Economics ( email )

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Mathias Sinning (Contact Author)

Australian National University (ANU) - Crawford School of Public Policy ( email )

ANU College of Asia and the Pacific
J.G. Crawford Building, #132, Lennox Crossing
Canberra, Australian Capital Territory 0200
Australia

HOME PAGE: http://www.mathiassinning.com

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