A Model of Foreign-Born Transfers: Evidence from Canadian Micro Data

37 Pages Posted: 23 Aug 2005

See all articles by Don J. DeVoretz

Don J. DeVoretz

Simon Fraser University (SFU) - Department of Economics; IZA Institute of Labor Economics

Florin Vadean

PSSRU, University of Kent

Date Written: August 2005

Abstract

This paper models financial transfers outside the household for both the Canadian-born and foreign-born Canadian populations in a traditional expenditure framework. Using survey data we estimate transfer functions as part of a larger expenditure system and calculate Engel elasticities for remittances by both the Canadian and foreign-born populations. We conclude that transfers outside the household are a normal good for recent Asian immigrants and a luxury good for all other immigrants and Canadians. Immigrant transfers upon arrival are greater than Canadian-born transfers indicating a strong entry effect. Assimilation or convergence to the Canadian-born norm over time is however very slow. We also find evidence of negative foreign-born transfers as sending country households remit to Canadian immigrant households. Finally, all foreign-born groups generally consider remittances to charitable organizations a greater necessity than inter-household transfers.

Keywords: Immigration, remittances

JEL Classification: J63, O15

Suggested Citation

DeVoretz, Don J. and Vadean, Florin, A Model of Foreign-Born Transfers: Evidence from Canadian Micro Data (August 2005). IZA Discussion Paper No. 1714, Available at SSRN: https://ssrn.com/abstract=783744

Don J. DeVoretz

Simon Fraser University (SFU) - Department of Economics ( email )

8888 University Drive
Burnaby, British Columbia V5A 1S6
Canada
7788086703 (Phone)

IZA Institute of Labor Economics

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

Florin Vadean (Contact Author)

PSSRU, University of Kent ( email )

George Allen Wing
Cornwallis Building
Kent, CT2 7NF
United Kingdom

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
51
Abstract Views
720
rank
422,301
PlumX Metrics