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Migration and Money: What determines Remittances? Evidence from Germany

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  • Holst, Elke
  • Schrooten, Mechthild

Abstract

The determinants of migrants' remittances are the subject of this study based on German SOEP data. For our analysis of the probability and amount of remittances, we do not restrict ourselves on immigrants with a foreign citizenship, but focus on all individuals with a migration background. Major findings are: first, the degree of integration into German society matters. Second, the probability to remit is not dominated by income. Third, foreigners living in Germany are not a homogenous group concerning their remittance behavior: people with Turkish and former Yugoslavian citizenship, who are facing a comparable strong pressure for return migration, remit significantly more than others. The study points to potentially interesting directions for future research: (a) deeper investigations of the extent to which the legal status of the migrant influences cross-border transfer behavior and (b) reconsidering the theoretical arguments since the motive for remittances might have changed during the ongoing globalization process.

Suggested Citation

  • Holst, Elke & Schrooten, Mechthild, 2006. "Migration and Money: What determines Remittances? Evidence from Germany," Discussion Paper Series a477, Institute of Economic Research, Hitotsubashi University.
    • Handle: RePEc:hit:hituec:a477
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    References listed on IDEAS

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    1. Stark, Oded & Wang, You Qiang, 2002. "Migration dynamics," Economics Letters, Elsevier, vol. 76(2), pages 159-164, July.
    2. Rapoport, Hillel & Docquier, Frederic, 2006. "The Economics of Migrants' Remittances," Handbook on the Economics of Giving, Reciprocity and Altruism, in: S. Kolm & Jean Mercier Ythier (ed.), Handbook of the Economics of Giving, Altruism and Reciprocity, edition 1, volume 1, chapter 17, pages 1135-1198, Elsevier.
    3. Ernst Fehr & Urs Fischbacher & Bernhard von Rosenbladt & J�rgen Schupp & Gert G. Wagner, "undated". "A Nation-Wide Laboratory: Examining trust and trustworthiness by integrating behavioral experiments into representative surveys," IEW - Working Papers 141, Institute for Empirical Research in Economics - University of Zurich.
    4. Elke Holst & Dean R. Lillard & Thomas A. DiPrete, 2001. "Proceedings of the 2000 Fourth International Conference of German Socio-Economic Panel Study Users (GSOEP 2000): Editorial Introduction," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 70(1), pages 5-6.
    5. Leah Vanwey, 2004. "Altruistic and contractual remittances between male and female migrants and households in rural Thailand," Demography, Springer;Population Association of America (PAA), vol. 41(4), pages 739-756, November.
    6. Stark,Oded, 1999. "Altruism and Beyond," Cambridge Books, Cambridge University Press, number 9780521663731, November.
    7. SOEP Group, 2001. "The German Socio-Economic Panel (GSOEP) after More than 15 Years: Overview," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 70(1), pages 7-14.
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    More about this item

    Keywords

    remittances; international migration; altruism;
    All these keywords.

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers

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