Skills and remittances: The case of Afghan, Egyptian, and Serbian immigrants in Germany

The issue of migration and development became in the last years highly relevant on the global policy agenda. Countries and international organisations increasingly perceive migration as a phenomenon that can positively impact development in both migrant receiving and sending countries, provided that appropriate policies are in place. And one of the central issues within the context of the migration and development nexus is the role of the migrants' remittances as a source of capital and possible engine for economic growth in developing countries. The migrants' remittances gained in importance on the international agenda1 because of the dramatic rise in international flows. Between 2001 and 2005 international migrant remittances' flows increased by 58%, to reach about US$232 billion (The World Bank, 2005). With about US$167 billion, developing countries received the biggest share, while industrial countries in North America and Western Europe are the major sources. However, there is still limited knowledge about the way in which these international transfers effect economic development in the migrant sending counties. --international migration,remittances

Circular Migration or Permanent Return: What Determines Different Forms of Migration?

This paper addresses the following questions: To what extent do the socio-economic characteristics of circular/repeat migrants differ from migrants who return permanently to the home country after their first trip (i.e. return migrants)? and What determines each of these distinctive temporary migration forms? Using Albanian household survey data and both a multinomial logit model and a maximum simulated likelihood (MSL) probit with two sequential selection equations, we find that education, gender, age, geographical location and the return reasons from the first migration trip significantly affect the choice of migration form. Compared to return migrants, circular migrants are more likely to be male, have primary education and originate from rural, less developed areas. Moreover, return migration seems to be determined by family reasons, a failed migration attempt but also the fulfillment of a savings target.return migration, circular migration, sample selection

The costs and benefits of European immigration

In the early 21st century Europe is confronted with an ageing population, stagnating or even declining native populations, high unemployment and in the most key countries also with slow economic growth. At the same time Europe remains one of the prime destinations of international migration. Free movement of people is a means of creating an integrated Europe. Geographic mobility also helps on establishing a more efficient labour market, to the long-term benefit of workers, employers, taxpayers and EU Member States. Thus, our paper quantifies current migration patterns (see pp. 14-15); it recollects theoretical (see pp. 16-27) and empirical arguments (see pp. 28-47) on why immigration is so important, to what extent labour mobility allows individuals to improve their job prospects and employers to recruit people with adequate skills. The paper also discusses what kind of common European policies should be undertaken to optimise benefits of international migration. All our findings might not only avail understanding the economic impact of immigration. But they have policy implications for migrant receiving countries in Europe as well. The aim is to develop a better understanding of how the EU and its Member States could use availability and skills of today's and future immigrant populations in order to cope with economic and demographic challenges. --

Social relations and remittances: Evidence from Canadian micro data

This paper models transfers outside the household for both the Canadian- born and foreign-born Canadian populations in a traditional expenditure framework with an unique composition of goods to illustrate the special motivations to remit by immigrants. We theorise that remittances to persons outside the households represent transfers to maintain social relations with relatives and friends and religious/charitable remittances are expenditures which foster group membership. Using Canadian survey data we estimate transfer functions as part of a larger expenditure system and calculate Engel elasticities for remittances to persons and to charities by both the Canadian and foreign-born populations. We conclude that expenditures to enhance social relations with relatives and friends (i.e. remittances to persons) are a normal good for recent Asian immigrants and a luxury good for all other immigrants and Canadians. Moreover, Asian households are the only ones that remit significantly more of their total expenditures to persons upon arrival, compared to the Canadian reference group, and their remittance behaviour does not converse to that of Canadian-born over time. This latter fact indicates strong cultural differences within the remitting households, most probably due to the fact that Asian households have stronger social ties to their extended family. Finally, with the exception of lower income North American and European immigrant households, all other immigrant groups and Canadians generally consider group membership contributions (i.e. charitable remittances) as a greater necessity than inter-household transfers. --international migration,household behaviour,remittances