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Measuring remittances

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  • De Arcangelis, Giuseppe
  • Fertig, Alexander
  • Liang, Yuna
  • Srouji, Peter
  • Yang, Dean

Abstract

Remittances received by households from international migrants are of interest in an increasing number of microeconomic analyses. Making use of novel data, we measure misreporting of remittances sent by migrants in the United Arab Emirates (UAE) to remittance recipients in the Philippines. We obtained administrative transaction data from a sample of Filipino migrants who were clients of a popular money transfer operator (MTO). We then surveyed these migrants as well as their primary remittance recipients about the same remittance flows. Migrant-reported remittances are only 6% lower than MTO administrative records, and we cannot reject their equality. A custom smartphone app designed to facilitate migrant remittance reporting does not help raise reporting accuracy. Recipient-reported remittances are 23% lower than migrant reports on average. Recipients under-report even more when they receive remittances less frequently and when remittances make up a lower share of household income.

Suggested Citation

  • De Arcangelis, Giuseppe & Fertig, Alexander & Liang, Yuna & Srouji, Peter & Yang, Dean, 2023. "Measuring remittances," Journal of Development Economics, Elsevier, vol. 161(C).
    • Handle: RePEc:eee:deveco:v:161:y:2023:i:c:s0304387822001468
    DOI: 10.1016/j.jdeveco.2022.103004
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    References listed on IDEAS

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    1. Gaurav Khanna & Emir Murathanoglu & Caroline B. Theoharides & Dean Yang, 2022. "Abundance from Abroad: Migrant Income and Long-Run Economic Development," NBER Working Papers 29862, National Bureau of Economic Research, Inc.
    2. De Arcangelis, Giuseppe & Joxhe, Majlinda & McKenzie, David & Tiongson, Erwin & Yang, Dean, 2015. "Directing remittances to education with soft and hard commitments: Evidence from a lab-in-the-field experiment and new product take-up among Filipino migrants in Rome," Journal of Economic Behavior & Organization, Elsevier, vol. 111(C), pages 197-208.
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    2. Pablo Aguilar Perez, 2024. "Global Spillovers of US Monetary Policy: New Insights from the Remittance Channel," Working Papers hal-04706954, HAL.
    3. Kpodar, Kangni & Amir Imam, Patrick, 2024. "How do transaction costs influence remittances?," World Development, Elsevier, vol. 177(C).

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