Selection Policy and Immigrants' Remittance Behaviour

39 Pages Posted: 12 Apr 2010

See all articles by Stephane Mahuteau

Stephane Mahuteau

Macquarie University - Economics Department

Matloob Piracha

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

Massimiliano Tani

University of New South Wales - Australian Defence Force Academy; IZA Institute of Labor Economics

Abstract

This paper analyses the impact of a change in Australia's immigration policy, introduced in the mid-1990s, on migrants' remittance behaviour. More precisely, we compare the remittance behaviour of two cohorts who entered Australia before and after the policy change, which consists of stricter entry requirements. The results indicate that those who entered under more stringent conditions – the second cohort – have a lower probability to remit but, if remitting, they tend to remit, on average, a higher amount than those in the first cohort. We also find significant time and region effects. Contrary to some existing evidence, time spent in Australia positively affects the probability to remit while in terms of regional effects, South Asians remit the highest amount. We discuss intuitions for the results in the paper.

Keywords: remittances, immigration, selection policy

JEL Classification: F22, F24, J61

Suggested Citation

Mahuteau, Stephane and Piracha, Matloob and Tani, Massimiliano, Selection Policy and Immigrants' Remittance Behaviour. IZA Discussion Paper No. 4874, Available at SSRN: https://ssrn.com/abstract=1587567

Stephane Mahuteau (Contact Author)

Macquarie University - Economics Department ( email )

North Ryde
Sydney, New South Wales 2109
Australia
612 9850 8489 (Phone)
612 9850 6069 (Fax)

HOME PAGE: http://www.econ.mq.edu.au/staff/position/staff_by_position/stephane_mahuteau

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

Massimiliano Tani

University of New South Wales - Australian Defence Force Academy ( email )

Sydney, NSW 2052
Australia
+612 6268 8512 (Phone)
+612 6248 8450 (Fax)

HOME PAGE: http://www.unsw.adfa.edu.au/sbus/staff_cvs/about_max_t.html

IZA Institute of Labor Economics

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

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