Identification and remittances

7th ERNOP ConferenceJuly 10, 2015

ESSEC Business School, Paris, France

Does integration hinder immigrant giving to the country of origin?

Authors

Arjen de Wit, VU University Amsterdam Daisha M. Merritt, James Madison University Sabith Khan, Virginia Tech

Remittances

Private transfers from immigrants to country of origin

Mostly to family members Altruistic, exchange, strategic, insurance and/or

investment motives (Lucas & Stark 1985; Rapoport & Docquier 2006)

Is this a form of philanthropy?

The data

The Giving in the Netherlands Immigrant Survey (GINIS) 2008

Five non-western migrant groups: Turkish, Moroccan, Surinamese, Antillean, Afghan

N = 564 CAWI and CAPI

Immigration in the Netherlands

1960s: 'guest workers' from Southern Europe and Northern Africa

1970s: increase in migration from (former) colonies in Caribbean

2000s/2010s: migration from Eastern European Union

Migrant groups in the Netherlands

Turkish origin 396,414

Moroccan origin 374,996

Surinamese origin 348,291

Antillean origin 146,855

Afghan origin 43,183

Non-western migrants 1,997,584

Total population 16,829,289

No decay in % of people remitting

Years living in the Netherlands

Amount remitted increases/decreases/increases

€

Years living in the Netherlands

How can decay be explained?

Identification model (Schervisch & Havens 1997) Philanthropic giving partly determined by

communities people participate in and the way people view society

Is this applicable to remittances giving?

Results

Total (0/1) Family (0/1) Total (€) Family (€)

Logistic Logistic OLS OLS

Years in NL 0.004 -0.005 -5.166 -5.005

Contact in country of origin

2.173*** 2.274*** 181.900 182.798

Contact Dutch friends

-0.042 -0.102 -60.709 -38.453

Volunteer in NL 0.290 0.208 -29.240 -64.803

Dislike Dutch friends

-0.107 -0.100 -110.400 -107.906

Dislike Dutch partner

0.118 0.071 -7.434 -3.525

How likely you return

0.139* 0.158** -11.873 -43.537

*** p<0.01, ** p<0.05, * p<0.1. Controlled for ethnicity, age, gender, religion, household size, education, marital status and income.

Summing up

No decay in remittances giving Immigrants who are in touch with country of

origin more likely to give remittances Immigrants who intent to return more likely to

give remittances Integration in new country not related to

remittances giving

Does integration hinder immigrant giving to the country of origin?

Not necessarily (Sense of) belonging to community in country of

origin determines remittances giving

Considerations

People give remittances because they want to show off

International money transfers have become easier

TV and other media raise awareness of need Some diaspora have increasingly strong shared

identity There might be a difference between first and

second generation immigrants

Thank you!

Arjen de Wit, VU University Amsterdam Daisha M. Merritt, James Madison University Sabith Khan, Virginia Tech