Migrant remittances and information flows

Evidence from a field experiment

Catia Batista, Gaia Narciso

Research output: Contribution to journalArticle

5 Citations (Scopus)

Abstract

Do information flows matter for remittance behavior? We design and implement a randomized control trial to quantitatively assess the role of communication between migrants and their international network on the extent and value of remittance flows. In the experiment, a random sample of 1,500 migrants residing in Ireland was offered the possibility of contacting their networks outside the host country for free over a varying number of months. We find a sizeable positive impact of our intervention on the value of migrant remittances sent. Larger remittance responses are associated with individuals who are employed and earn higher incomes. This evidence is consistent with the idea that the observed increase in remittances is not a consequence of relaxed budget constraints due to subsidized communication costs but rather a likely result of improved information, perhaps due to better migrant control over remittance use, enhanced trust in remittance channels due to experience sharing, or increased remittance recipients' social pressure on migrants.

Original languageEnglish
Pages (from-to)203-219
Number of pages17
JournalWorld Bank Economic Review
Volume32
Issue number1
DOIs
Publication statusPublished - 1 Feb 2018

Fingerprint

migrants remittance
remittance
information flow
migrant
experiment
evidence
communication
random sample
Ireland
Values
budget
recipient
field experiment
Information flow
Field experiment
Migrants
Remittances
income
costs
experience

Keywords

  • Information flows
  • International migration
  • Migrant networks
  • Migrant remittances
  • Randomized control trial

Cite this

@article{e3f3ff9c4bbd45e296b45d73761daa02,
title = "Migrant remittances and information flows: Evidence from a field experiment",
abstract = "Do information flows matter for remittance behavior? We design and implement a randomized control trial to quantitatively assess the role of communication between migrants and their international network on the extent and value of remittance flows. In the experiment, a random sample of 1,500 migrants residing in Ireland was offered the possibility of contacting their networks outside the host country for free over a varying number of months. We find a sizeable positive impact of our intervention on the value of migrant remittances sent. Larger remittance responses are associated with individuals who are employed and earn higher incomes. This evidence is consistent with the idea that the observed increase in remittances is not a consequence of relaxed budget constraints due to subsidized communication costs but rather a likely result of improved information, perhaps due to better migrant control over remittance use, enhanced trust in remittance channels due to experience sharing, or increased remittance recipients' social pressure on migrants.",
keywords = "Information flows, International migration, Migrant networks, Migrant remittances, Randomized control trial",
author = "Catia Batista and Gaia Narciso",
note = "Funding agencies: NORFACE Research Program {"}Migration in Europe - Social, Economic, Cultural and Policy Dynamics{"}, Department of Economics and the Arts and Social Sciences Benefactions Fund at Trinity College Dublin, Nova Forum at Universidade Nova de Lisboa, World Bank Group and Leeds Trinity University.",
year = "2018",
month = "2",
day = "1",
doi = "10.1093/wber/lhw058",
language = "English",
volume = "32",
pages = "203--219",
journal = "World Bank Economic Review",
issn = "0258-6770",
publisher = "Oxford University Press",
number = "1",

}

Migrant remittances and information flows : Evidence from a field experiment. / Batista, Catia; Narciso, Gaia.

In: World Bank Economic Review, Vol. 32, No. 1, 01.02.2018, p. 203-219.

Research output: Contribution to journalArticle

TY - JOUR

T1 - Migrant remittances and information flows

T2 - Evidence from a field experiment

AU - Batista, Catia

AU - Narciso, Gaia

N1 - Funding agencies: NORFACE Research Program "Migration in Europe - Social, Economic, Cultural and Policy Dynamics", Department of Economics and the Arts and Social Sciences Benefactions Fund at Trinity College Dublin, Nova Forum at Universidade Nova de Lisboa, World Bank Group and Leeds Trinity University.

PY - 2018/2/1

Y1 - 2018/2/1

N2 - Do information flows matter for remittance behavior? We design and implement a randomized control trial to quantitatively assess the role of communication between migrants and their international network on the extent and value of remittance flows. In the experiment, a random sample of 1,500 migrants residing in Ireland was offered the possibility of contacting their networks outside the host country for free over a varying number of months. We find a sizeable positive impact of our intervention on the value of migrant remittances sent. Larger remittance responses are associated with individuals who are employed and earn higher incomes. This evidence is consistent with the idea that the observed increase in remittances is not a consequence of relaxed budget constraints due to subsidized communication costs but rather a likely result of improved information, perhaps due to better migrant control over remittance use, enhanced trust in remittance channels due to experience sharing, or increased remittance recipients' social pressure on migrants.

AB - Do information flows matter for remittance behavior? We design and implement a randomized control trial to quantitatively assess the role of communication between migrants and their international network on the extent and value of remittance flows. In the experiment, a random sample of 1,500 migrants residing in Ireland was offered the possibility of contacting their networks outside the host country for free over a varying number of months. We find a sizeable positive impact of our intervention on the value of migrant remittances sent. Larger remittance responses are associated with individuals who are employed and earn higher incomes. This evidence is consistent with the idea that the observed increase in remittances is not a consequence of relaxed budget constraints due to subsidized communication costs but rather a likely result of improved information, perhaps due to better migrant control over remittance use, enhanced trust in remittance channels due to experience sharing, or increased remittance recipients' social pressure on migrants.

KW - Information flows

KW - International migration

KW - Migrant networks

KW - Migrant remittances

KW - Randomized control trial

UR - http://www.scopus.com/inward/record.url?scp=85043313427&partnerID=8YFLogxK

U2 - 10.1093/wber/lhw058

DO - 10.1093/wber/lhw058

M3 - Article

VL - 32

SP - 203

EP - 219

JO - World Bank Economic Review

JF - World Bank Economic Review

SN - 0258-6770

IS - 1

ER -