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Motives to Remit: Evidence from Tracked Internal Migrants in Ethiopia

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  • de Brauw, Alan
  • Mueller, Valerie
  • Woldehanna, Tassew

Abstract

Remittances are used by households for insurance, investment, and income. Flows from internal migrants are relatively understudied in Africa, where migrants are less likely to remit to their origin households. We use a unique matched migrant sample to study what drives the low remittance rates in Ethiopia. Descriptive statistics suggest remitters are positively selected in terms of wealth characteristics compared with the average tracked migrant. Limited skill transferability and liquidity largely explain low remittance rates in Ethiopia. Migrants are additionally motivated to remit as a form of self-insurance against own shocks to income and to protect their family’s productive assets.

Suggested Citation

  • de Brauw, Alan & Mueller, Valerie & Woldehanna, Tassew, 2013. "Motives to Remit: Evidence from Tracked Internal Migrants in Ethiopia," World Development, Elsevier, vol. 50(C), pages 13-23.
    • Handle: RePEc:eee:wdevel:v:50:y:2013:i:c:p:13-23
    DOI: 10.1016/j.worlddev.2013.04.008
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    3. Atsede Desta Tegegne & Marianne Penker, 2016. "Determinants of rural out-migration in Ethiopia: Who stays and who goes?," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 35(34), pages 1011-1044.
    4. Naudé, Wim & Tregenna, Fiona, 2023. "Africa's Industrialization Prospects: A Fresh Look," IZA Discussion Papers 16043, Institute of Labor Economics (IZA).
    5. Jean-François Maystadt & Valerie Mueller & Ashwini Sebastian, 2016. "Environmental Migration and Labor Markets in Nepal," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 3(2), pages 417-452.
    6. Joel OUDINET, 2021. "Introduction - L’impact de la migration sur le développement inclusif," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 53, pages 5-21.
    7. Mussa, E.C. & Mirzabaev, A. & Admassie, A. & Rukundo, E.N., 2018. "Effects of childhood work on long-term out-migration decision in rural Ethiopia," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276004, International Association of Agricultural Economists.
    8. Kikulwe, Enoch M. & Fischer, Elisabeth & Qaim, Matin, 2013. "Mobile money, market transactions, and household income in rural Kenya," GlobalFood Discussion Papers 155847, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    9. Gulmira Nurzhanova & Galym Mussirov & Shakizada Niyazbekova & Akilbek Ilyas & Yuliya Gabdrashitovna Tyurina & Leila A. Maisigova & Marija Troyanskaya & Kymbat Kunanbayeva, 2020. "Demographic and migration processes of labor potential: a case study the agricultural sector of the Republic of Kazakhstan," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 8(1), pages 656-671, September.
    10. Katrina Kosec & Hosaena Ghebru & Brian Holtemeyer & Valerie Mueller & Emily Schmidt, 2018. "The Effect of Land Access on Youth Employment and Migration Decisions: Evidence from Rural Ethiopia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 100(3), pages 931-954.
    11. Loxha Arbëresha, 2019. "Do Remittances reduce poverty in Kosovo? - A counterfactual analysis," South East European Journal of Economics and Business, Sciendo, vol. 14(2), pages 117-132, December.
    12. Kosec, Katrina & Ghebru, Hosaena & Holtemeyer, Brian & Mueller, Valerie & Schmidt, Emily, 2016. "The effect of land inheritance on youth employment and migration decisions: Evidence from rural Ethiopia," IFPRI discussion papers 1594, International Food Policy Research Institute (IFPRI).
    13. Hirvonen, Kalle & Lilleør, Helene Bie, 2015. "Going Back Home: Internal Return Migration in Rural Tanzania," World Development, Elsevier, vol. 70(C), pages 186-202.
    14. World Bank, 2015. "Tanzania Poverty Assessment," World Bank Publications - Reports 21871, The World Bank Group.
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    18. Joel Oudinet, 2021. "L’impact de la migration sur le développement inclusif," Post-Print hal-04065384, HAL.
    19. Lee, Yu Na, 2015. "Effect of Price Risk on Migration: Evidence from Ethiopian Rural Households," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205812, Agricultural and Applied Economics Association.
    20. de Brauw, Alan & Mueller, Valerie & Lee, Hak Lim, 2014. "The Role of Rural–Urban Migration in the Structural Transformation of Sub-Saharan Africa," World Development, Elsevier, vol. 63(C), pages 33-42.

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