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Remittances and the Brain Drain Revisited: The Microdata Show That More Educated Migrants Remit More

Author

Listed:
  • Albert Bollard

    (Stanford University)

  • David McKenzie

    (World Bank, BREAD, IZA and CReAM)

  • Melanie Morten

    (Yale University)

  • Hillel Rapoport

    (Bar-Ilan University, EQUIPPE and CID, Harvard University)

Abstract
Two of the most salient trends surrounding the issue of migration and development over the last two decades are the large rise in remittances, and an increased flow of skilled migration. However, recent literature based on cross-country regressions has claimed that more educated migrants remit less, leading to concerns that further increases in skilled migration will hamper remittance growth. We revisit the relationship between education and remitting behavior using microdata from surveys of immigrants in eleven major destination countries. The data show a mixed pattern between education and the likelihood of remitting, and a strong positive relationship between education and the amount remitted conditional on remitting. Combining these intensive and extensive margins gives an overall positive effect of education on the amount remitted. The microdata then allow investigation as to why the more educated remit more. We find the higher income earned by migrants, rather than characteristics of their family situations explains much of the higher remittances.

Suggested Citation

  • Albert Bollard & David McKenzie & Melanie Morten & Hillel Rapoport, 2009. "Remittances and the Brain Drain Revisited: The Microdata Show That More Educated Migrants Remit More," Working Papers 2009-26, Bar-Ilan University, Department of Economics.
    • Handle: RePEc:biu:wpaper:2009-26
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    References listed on IDEAS

    as
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    2. Robinson, Peter M, 1988. "Root- N-Consistent Semiparametric Regression," Econometrica, Econometric Society, vol. 56(4), pages 931-954, July.
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    4. Riccardo Faini, 2007. "Remittances and the Brain Drain: Do More Skilled Migrants Remit More?," The World Bank Economic Review, World Bank, vol. 21(2), pages 177-191, May.
    5. Riccardo Faini, 2006. "Remittances and the brain drain," Development Working Papers 214, Centro Studi Luca d'Agliano, University of Milano.
    6. 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.
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    More about this item

    Keywords

    Remittances; Migration; Brain Drain; Education;
    All these keywords.

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • 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

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