We use Moroccan data to study the determinants of international migrants’ remittances, testing the altruistic and welfare hypotheses. In particular, we analyze and assess what motivates migrants to send remittances back home. Our results lend support to the altruistic hypothesis suggesting that remittances are sent to households with low levels of welfare. Furthermore, the decision to remit is intensely associated to individual characteristics such as migrant income, gender and age. Likewise, remittances may be viewed as loan repayment if the migration costs were borne by the remittance-receiving family. JEL classification F22, J61, D1, D91, O55.

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Using a nationally representative household data set from Morocco, the present study seeks to estimate the effects of migrants' remittances on household investments in children's human capital. Three findings emerge. First, children in remittance-receiving households are more likely to attend school and less likely to drop out compared with those in non-remittance-receiving households. Second, children's participation in labour market decreases in the presence of international remittances. Third, remittances are associated with significantly lower level of no schooling for girls. These findings support the growing view that remittances can help increase the educational opportunities, especially for female children.

This article attempts to assess empirically the impact of remittances on household expenditure and relative poverty in Morocco. We apply propensity score matching methods to the 2006/2007 Moroccan Living Standards Measurement Survey. We find that migrants' remittances can improve living standards among Moroccan households and affect negatively the incidence of poverty. The results show a statistically significant and positive impact of hose remittances on recipient households' expenditures. They are also significantly associated with a decline in the probability of being in poverty for rural households; it decreases by 11.3 percentage points. In comparison, this probability decreases by 3 points in urban area.