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Migrant Remittances and Information Flows: Evidence from a Field Experiment

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  • Catia Batista
  • Gaia Narciso

Abstract

Do information flows matter for remittance behavior? We design and implement a randomized control trial to quantitatively assess the role of communication between migrants and their international network on the extent and value of remittance flows. In the experiment, a random sample of 1,500 migrants residing in Ireland was offered the possibility of contacting their networks outside the host country for free over a varying number of months. We find a sizeable positive impact of our intervention on the value of migrant remittances sent. Larger remittance responses are associated with individuals who are employed and earn higher incomes. This evidence is consistent with the idea that the observed increase in remittances is not a consequence of relaxed budget constraints due to subsidized communication costs but rather a likely result of improved information, perhaps due to better migrant control over remittance use, enhanced trust in remittance channels due to experience sharing, or increased remittance recipients’ social pressure on migrants.

Suggested Citation

  • Catia Batista & Gaia Narciso, 2018. "Migrant Remittances and Information Flows: Evidence from a Field Experiment," The World Bank Economic Review, World Bank, vol. 32(1), pages 203-219.
    • Handle: RePEc:oup:wbecrv:v:32:y:2018:i:1:p:203-219.
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    File URL: http://hdl.handle.net/10.1093/wber/lhw058
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    1. Catia Batista & Pedro C. Vicente, 2013. "Introducing Mobile Money in Rural Mozambique: Evidence from a Field Experiment," Nova SBE Working Paper Series novafrica:wp1301, Universidade Nova de Lisboa, Nova School of Business and Economics.
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    8. Catia Batista & Dan Silverman & Dean Yang, 2013. "Directed Giving: Evidence from an Inter-Household Transfer Experiment," Nova SBE Working Paper Series novafrica:wp1302, Universidade Nova de Lisboa, Nova School of Business and Economics.
    9. Catia Batista & Janis Umblijs, 2016. "Do migrants send remittances as a way of self-insurance?," Oxford Economic Papers, Oxford University Press, vol. 68(1), pages 108-130.
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    11. Catia Batista & Pedro C. Vicente, 2013. "Introducing mobile money in rural Mozambique: Evidence from a field experiment," NOVAFRICA Working Paper Series wp1301, Universidade Nova de Lisboa, Nova School of Business and Economics, NOVAFRICA.
    12. Kate Ambler & Diego Aycinena & Dean Yang, 2015. "Channeling Remittances to Education: A Field Experiment among Migrants from El Salvador," American Economic Journal: Applied Economics, American Economic Association, vol. 7(2), pages 207-232, April.
    13. Gharad Bryan & Shyamal Chowdhury & Ahmed Mushfiq Mobarak, 2014. "Underinvestment in a Profitable Technology: The Case of Seasonal Migration in Bangladesh," Econometrica, Econometric Society, vol. 82(5), pages 1671-1748, September.
    14. Batista, Catia & Umblijs, Janis, 2014. "Do Migrants Send Remittances as a Way of Self-Insurance? Evidence from a Representative Immigrant Survey," IZA Discussion Papers 7984, Institute of Labor Economics (IZA).
    15. Ambler, Kate, 2015. "Don't tell on me: Experimental evidence of asymmetric information in transnational households," Journal of Development Economics, Elsevier, vol. 113(C), pages 52-69.
    16. Batista, Catia & Silverman, Dan & Yang, Dean, 2015. "Directed giving: Evidence from an inter-household transfer experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 118(C), pages 2-21.
    17. Mckenzie, David & Rapoport, Hillel, 2007. "Network effects and the dynamics of migration and inequality: Theory and evidence from Mexico," Journal of Development Economics, Elsevier, vol. 84(1), pages 1-24, September.
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    Cited by:

    1. Batista, Catia & McKenzie, David, 2023. "Testing classic theories of migration in the lab," Journal of International Economics, Elsevier, vol. 145(C).
    2. Ambler, Kate, 2015. "Don't tell on me: Experimental evidence of asymmetric information in transnational households," Journal of Development Economics, Elsevier, vol. 113(C), pages 52-69.
    3. Jale Samuwai & Jeremy Maxwell Hills, 2018. "Assessing Climate Finance Readiness in the Asia-Pacific Region," Sustainability, MDPI, vol. 10(4), pages 1-18, April.
    4. Bah, Tijan L. & Batista, Catia & Gubert, Flore & McKenzie, David, 2023. "Can information and alternatives to irregular migration reduce “backway” migration from The Gambia?," Journal of Development Economics, Elsevier, vol. 165(C).
    5. Catia Batista & Janis Umblijs, 2016. "Do migrants send remittances as a way of self-insurance?," Oxford Economic Papers, Oxford University Press, vol. 68(1), pages 108-130.
    6. Batista, Catia & Silverman, Dan & Yang, Dean, 2015. "Directed giving: Evidence from an inter-household transfer experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 118(C), pages 2-21.
    7. Molina Millán, Teresa, 2015. "Regional Migration, Insurance and Economic Shocks: Evidence from Nicaragua," IZA Discussion Papers 9494, Institute of Labor Economics (IZA).
    8. Marlon Seror, 2015. "Modeling and Measuring Information Asymmetry in the Context of Senegalese Migrants' Remittances," Working Papers DT/2015/23, DIAL (Développement, Institutions et Mondialisation).
    9. Gaia Narciso, 2015. "Labour and migration in rural Vietnam," WIDER Working Paper Series wp-2015-095, World Institute for Development Economic Research (UNU-WIDER).
    10. Michael A. Clemens & Timothy N. Ogden, 2020. "Migration and household finances: How a different framing can improve thinking about migration," Development Policy Review, Overseas Development Institute, vol. 38(1), pages 3-27, January.
    11. Joachim De Weerdt & Garance Genicot & Alice Mesnard, 2019. "Asymmetry of Information within Family Networks," Journal of Human Resources, University of Wisconsin Press, vol. 54(1), pages 225-254.
    12. Catia Batista & Pedro C. Vicente, 2018. "Is mobile money changing rural Africa? Evidence from a field experiment," NOVAFRICA Working Paper Series wp1805, Universidade Nova de Lisboa, Nova School of Business and Economics, NOVAFRICA.
    13. Catia Batista & Francesco Cestari, 2016. "Migrant intentions to return: The role of migrant social networks," NOVAFRICA Working Paper Series wp1602, Universidade Nova de Lisboa, Nova School of Business and Economics, NOVAFRICA.
    14. Fahey, Éamonn & McGinnity, Frances & Quinn, Emma, 2019. "Data for monitoring integration: Gaps, challenges and opportunities," Research Series, Economic and Social Research Institute (ESRI), number BKMNEXT373.
    15. David McKenzie & Dean Yang, 2015. "Evidence on Policies to Increase the Development Impacts of International Migration," The World Bank Research Observer, World Bank, vol. 30(2), pages 155-192.
    16. Gaia Narciso, 2015. "Labour and migration in rural Vietnam," WIDER Working Paper Series 095, World Institute for Development Economic Research (UNU-WIDER).
    17. Catia Batista & Ana Isabel Costa, 2016. "Assessing the role of social networks on migrant labor market outcomes: Evidence from a representative immigrant survey," NOVAFRICA Working Paper Series wp1601, Universidade Nova de Lisboa, Nova School of Business and Economics, NOVAFRICA.
    18. Carolina Alban Conto, 2021. "Does Distance-Driven Information Asymmetry Affect Private Income Transfers? Theory and Evidence From Colombia," Working Papers hal-03192955, HAL.
    19. Meseguer, Covadonga & Lavezzolo, Sebastián & Aparicio, Javier, 2016. "Financial remittances, trans-border conversations, and the state," LSE Research Online Documents on Economics 68273, London School of Economics and Political Science, LSE Library.
    20. Ademmer, Esther & Barslund, Mikkel & Benček, David & Di Salvo, Mattia & Groll, Dominik & Hoxhaj, Rezart & Kadkoy, Omar & Lanati, Mauro & Laurentsyeva, Nadzeya & Lücke, Matthias & Ludolph, Lars & Pizzu, 2018. "2018 MEDAM Assessment Report on Asylum and Migration Policies in Europe. Flexible Solidarity: A comprehensive strategy for asylum and immigration in the EU," MEDAM Assessment Report on Asylum and Migration Policies in Europe, Mercator Dialogue on Asylum and Migration (MEDAM), number 182240.
    21. McGinnity, Frances & Enright, Shannen & Quinn, Emma & Maître, Bertrand & Privalko, Ivan & Darmody, Merike & Polakowski, Michal, 2020. "Monitoring report on integration 2020," Research Series, Economic and Social Research Institute (ESRI), number BKMNEXT403.
    22. Catia Batista & Ana Isabel Costa, 2016. "Assessing the role of social networks on migrant labor market outcomes: Evidence from a representative immigrant survey," FEUNL Working Paper Series novaf:wp1601, Universidade Nova de Lisboa, Faculdade de Economia.
    23. Flore Gubert, 2014. "The discourse and practice of co-development in Europe," Chapters, in: Robert E.B. Lucas (ed.), International Handbook on Migration and Economic Development, chapter 5, pages 113-151, Edward Elgar Publishing.
    24. Kate Ambler & Susan Godlonton, 2020. "Information Asymmetries and Remittance Recipient Income: A Field Experiment in Malawi," Department of Economics Working Papers 2020-12, Department of Economics, Williams College.
    25. Ur Rehman, Obeid, 2023. "Spousal communication and information sharing: Evidence from migrants and their spouses," Journal of Development Economics, Elsevier, vol. 165(C).

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    More about this item

    Keywords

    migrant remittances; information flows; international migration; migrant networks; randomized control trial;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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