Do Migrants Send Remittances as a Way of Self-Insurance?

• Author(s): Batista, Catia ; Umblijs, Janis
• Date: 2014
• Persistent ID: http://hdl.handle.net/10362/13825
• Origin: Repositório Institucional da UNL
• Subject(s): Migration; Risk Aversion; Remittances; Self-Insurance
• Document Type: Working paper
• Language: English
• Contributor(s): RUN

Description

How do risk preferences affect migrant remittance behaviour? Examination of this relationship has only begun to be explored. Using a tailored representative survey of 1500 immigrants in the Greater Dublin Area, Ireland, we find a positive and significant relationship between risk aversion and migrant remittances. Risk-averse individuals are more likely to send remittances home and are, on average, likely to remit a higher amount, after controlling for a broad range of individual and group characteristics. The evidence we obtain is consistent with a “purchase of self-insurance” motive to remit in that we also find support for more remittances being sent by risk-averse immigrants who face higher wage risks and to individuals with more financial resources.