Social Relations and Remittances: Evidence from Canadian Micro Data

36 Pages Posted: 11 Jan 2007

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: December 2006

Abstract

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

DeVoretz, Don J. and Vadean, Florin, Social Relations and Remittances: Evidence from Canadian Micro Data (December 2006). IZA Discussion Paper No. 2501, Available at SSRN: https://ssrn.com/abstract=955826

Don J. DeVoretz (Contact Author)

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

PSSRU, University of Kent ( email )

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

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