Remittances and the Brain Drain Revisited: The Microdata Show that More Educated Migrants Remit More

37 Pages Posted: 20 Apr 2016

See all articles by Albert Bollard

Albert Bollard

Stanford University

David J. McKenzie

World Bank - Development Research Group (DECRG); IZA Institute of Labor Economics

Melanie Morten

Yale University

Hillel Rapoport

Bar-Ilan University - Department of Economics; Stanford University

Multiple version iconThere are 2 versions of this paper

Date Written: November 1, 2009

Abstract

Two of the most salient trends surrounding the issue of migration and development over the past 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. This paper revisits the relationship between education and remitting behavior using microdata from surveys of immigrants in 11 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. The analysis finds that the higher income earned by migrants, rather than characteristics of their family situations, explains much of the higher remittances.

Keywords: Population Policies, Remittances, Debt Markets, International Migration, Access & Equity in Basic Education

Suggested Citation

Bollard, Albert and McKenzie, David John and Morten, Melanie and Rapoport, Hillel, Remittances and the Brain Drain Revisited: The Microdata Show that More Educated Migrants Remit More (November 1, 2009). World Bank Policy Research Working Paper Series, Vol. , pp. -, 2009. Available at SSRN: https://ssrn.com/abstract=1503807

Albert Bollard (Contact Author)

Stanford University ( email )

Stanford, CA 94305
United States

David John McKenzie

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

IZA Institute of Labor Economics ( email )

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

Melanie Morten

Yale University

New Haven, CT 06520
United States

Hillel Rapoport

Bar-Ilan University - Department of Economics ( email )

Ramat-Gan, 52900
Israel
+972 3 535 3180 (Fax)

Stanford University ( email )

Stanford, CA 94305
United States

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