Social Relations and Remittances: Evidence from Canadian Micro Data
36 Pages Posted: 11 Jan 2007
Date Written: December 2006
We theorise that remittances to persons outside the households represent transfers to maintain social relations with relatives and friends and charitable remittances are expenditures which foster group membership. We estimate transfer functions as part of a larger expenditure system and calculate Engel elasticities for remittances to persons and to charities. We conclude that expenditures to enhance social relations with relatives and friends are a normal good for recent Asian immigrants and a luxury good for all other immigrants and Canadians. This fact indicates strong cultural differences in the remittance behaviour of the population groups included.
Keywords: international migration, household behaviour, remittances
JEL Classification: C31, D12, F22, F24
Suggested Citation: Suggested Citation