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Do Migrants Send Remittances as a Way of Self-Insurance? Evidence from a Representative Immigrant Survey

Author

Listed:
  • Catia Batista

    (Nova University of Lisbon)

  • Janis Umblijs

    (Ragnar Frisch Centre for Economic Research, Oslo, Norway)

Abstract

Do migrants send remittances as a way of obtaining insurance? While this motive is theoretically suggested in the literature, the question of identifying this relationship empirically has only begun to be explored. Using a unique representative survey of 1500 immigrants in the Greater Dublin Area, Ireland, we find a positive and signicant relationship between risk aversion and remittance behavior. Risk-averse individuals are more likely to send remittances home and are, on average, likely to remit a higher amount, after controlling for a broad range of individual and group characteristics. Consistent with a purchase of self insurance motive to remit, we also provide evidence of more remittances sent by risk averse immigrants facing higher wage risks and remitting to individuals with more financial resources.

Suggested Citation

  • Catia Batista & Janis Umblijs, 2014. "Do Migrants Send Remittances as a Way of Self-Insurance? Evidence from a Representative Immigrant Survey," Norface Discussion Paper Series 2014005, Norface Research Programme on Migration, Department of Economics, University College London.
    • Handle: RePEc:nor:wpaper:2014005
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    Cited by:

    1. Zhan, Crystal & Deole, Sumit, 2022. "Economic Preferences and the Self-selection of Immigrants," GLO Discussion Paper Series 1156, Global Labor Organization (GLO).
    2. 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.
    3. Catia Batista & Janis Umblijs, 2014. "Migration, risk attitudes, and entrepreneurship: evidence from a representative immigrant survey," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-25, December.
    4. Christian Dustmann & Joseph-Simon Görlach, 2016. "The Economics of Temporary Migrations," Journal of Economic Literature, American Economic Association, vol. 54(1), pages 98-136, March.
    5. Marina De Angelis & Marcella Corsi & Daniele Frigeri, 2017. "The determinants of entrepreneurship for migrants in Italy. Do Italian migrants become entrepreneurs by “opportunity” or through “necessity”?," Working Papers CEB 17-031, ULB -- Universite Libre de Bruxelles.
    6. 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.
    7. 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.
    8. Sumit S. Deole & Marc Oliver Rieger, 2023. "The immigrant-native gap in risk and time preferences in Germany: levels, socio-economic determinants, and recent changes," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(2), pages 743-778, April.
    9. 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.

    More about this item

    Keywords

    Migration; Risk Aversion; Remittances; Insurance;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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