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Remittances and Chain Migration: Longitudinal Evidence from Bosnia and Herzegovina
Ralitza Dimova François-Charles Wolff
D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author.
ABSTRACT
Remittances and Chain Migration: Longitudinal Evidence from Bosnia and HerzegovinaMost of the literature on remittances has focused on their implications for the welfare of family members in the country of origin and has disregarded the possibility for remittances to trigger chain migration. In this paper, we address this issue with the use of longitudinal data from Bosnia and Herzegovina, one of the primary exporters of migrants and recipients of remittances in the world. Our panel data estimates indicate that remittances have a significant positive impact on the migration prospects of those remaining in the country of origin. Highly educated, healthy and young individuals are those most likely to migrate, suggesting that the implications of prospective migration on both the labor market and the rest of the economy in the origin country are likely to be negative.
JEL Classification:J61, 015