An Integrated Analysis of Migration and Remittances: Modeling Migration as a Mechanism for Selection

Abstract

Prior work has modeled individuals' migration and remittance behavior separately, and reported mixed empirical support for various remittance motivations. This study offers an integrated approach, and considers migration as a mechanism for selection in a censored probit model of remittance behavior. This approach leads to different conclusions about the determinants of remittance behavior in the Thai internal migration setting. To the extent that these determinants capture different remittance motivations, as prior research has presumed, the analysis also provides varying support for these motivations. These results suggest that migration and remittance behavior are interrelated, and it is crucial for an analysis of remittance behavior to control for the selectivity of migration.

Causal Relationships Between Economic Dynamics and Migration: Romania as Case Study

“…If in the cities this tendency was not visible, in the case of rural areas, it was very strong, causing loss of local identity through the phenomenon of imitation of architecture from different parts of Europe. Due to the orientation of remittances in non-productive sectors, the visible consequences are very few at the macro-level (Garip 2012).…”

Global Change and Human Mobility

“…Due to the orientation of remittances in non-productive sectors, the visible consequences are very few at the macro-level (Garip 2012). Remittances were used for the maintenance of the 100,000 children left home, as well as for the parents of those leaving to work.…”

Determinants and Socioeconomic Impacts of Migrant Remittances: A Study of Rural Bangladeshi Migrants in Italy

“…Rapoport and Docquier (2005) explain that the educational level of the migrant does not have a significant influence on the altruistic and exchange motives. The investment motive views remittances as a repayment made by the migrant (Garip 2012), in terms of loans to cover costs of education or migration at the destination (Cox 1987;Poirine 1997). Therefore, remittances increase with migrants' education.…”