Does Demographic Characteristics Affect Remittance Behavior? An Analysis of Migrants in the UAE

Abstract

The United Arab Emirates (UAE) is a popular destination for migrant workers worldwide, not just from Asia. Along with expanding the UAE’s economic activities, the amount of remittance outflows has increased dramatically, making it the second-largest remitting country, just behind the United States. This study looks into the important demographic factors that influence migrant remittance behavior in the Emirates. The examinations revealed that age, race, marital status, and a number of dependents are the most important factors influencing remittance behavior, while gender is found to be insignificant, proving the popular premise of female altruism to be incorrect. The findings are expected to assist policymakers in the government in devising ways and means to reduce remittance outflows as they have vital implications for some key macro-economic variables such as inflation and exchange rate as well as financial service providers in the UAE, in orchestrating a suitable promotional strategy to target suitable cohorts.

Economic and governance drivers of global remittances: a comparative study of the UK, US, and UAE to India

“…Building upon the literature review pertaining to our last variable of interest, namely the presence of employers in recipient countries and their impact on the outflow of remittances. In their study on the UAE, Khan and Akhtar (2021) have identified unemployment within individuals' home countries as a significant factor driving migration to the UAE. The study additionally posited that the availability of numerous employment opportunities in the host nations has a favourable impact on individuals' income and exhibits a direct relationship with the outflow of remittances from the country.…”

Migration, income pooling and food deprivation

“…This article is not the first to study the characteristics of migrants who remit. Recently, Khan and Akhtar (2021) studied the demographic characteristics that affect remittance behaviours in the United Arab Emirates. This article differs from this literature by using the characteristics of a remitter, not as an end in itself.…”

Linking Financial Capability, Advice, Anxiety, Social Security, and Residential Status with Outward Remittances: Evidence from the UAE

“…On the other hand, some scholars have helped develop the literature by considering how external remittances have affected the sending countries’ macroeconomic factors and economic growth (Jena & Sethi, 2020; Naufal & Genc, 2018). Previous examinations in the area have also studied the impact of demographic characteristics on remittance behavior in the UAE (Khan & Akhtar, 2021). Even during the pandemic, the remittance outflows remained resilient to the economic slowdown caused by the virus and even registered growth in certain regions (World Bank, 2021).…”