Remittances, Migrants' Education and Immigration Policy: Theory and Evidence from Bilateral Data

32 Pages Posted: 20 Nov 2011

See all articles by Frédéric Docquier

Frédéric Docquier

Université catholique de Louvain; CREAM, Centre for Research on Environmental Appraisal & Management, UK; IZA Institute of Labor Economics

Hillel Rapoport

Bar-Ilan University - Department of Economics; Stanford University

Sara Salomone

Catholic University of Louvain (UCL); University of Rome Tor Vergata

Abstract

We investigate the relationship between remittances and migrants' education both theoretically and empirically, using original bilateral remittance data. At a theoretical level we lay out a model of remittances interacting migrants' human capital with two dimensions of immigration policy: restrictiveness, and selectivity. The model predicts that the relationship between remittances and migrants' education is ambiguous and depends on the immigration policy conducted at destination. The effect of education is more likely to be positive when the immigration policy is more restrictive and less skill-selective. These predictions are then tested empirically using bilateral remittance and migration data and proxy measures for the restrictiveness and selectivity of immigration policies at destination. The results strongly support the theoretical analysis, suggesting that immigration policies determine the sign and magnitude of the relationship between remittances and migrants' education.

Keywords: remittances, migration, brain drain, immigration policy

JEL Classification: F24, F22, O15, J61

Suggested Citation

Docquier, Frédéric and Rapoport, Hillel and Salomone, Sara, Remittances, Migrants' Education and Immigration Policy: Theory and Evidence from Bilateral Data. IZA Discussion Paper No. 6104. Available at SSRN: https://ssrn.com/abstract=1962162

Frédéric Docquier (Contact Author)

Université catholique de Louvain ( email )

IRES
Place Montesquieu 3
Louvain-la-Neuve, 1348
Belgium

HOME PAGE: http://https://perso.uclouvain.be/frederic.docquier/

CREAM, Centre for Research on Environmental Appraisal & Management, UK

University of Newcastle
NE1 7RU Newcastle Upon Tyne
United States

IZA Institute of Labor Economics

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

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

Sara Salomone

Catholic University of Louvain (UCL) ( email )

Place Montesquieu, 3
Louvain-la-Neuve, 1348
Belgium

University of Rome Tor Vergata

Via di Tor Vergata
Rome, Lazio 00173
Italy

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