Population Research and Policy Review

, Volume 31, Issue 5, pp 637–663 | Cite as

An Integrated Analysis of Migration and Remittances: Modeling Migration as a Mechanism for Selection

Article

Abstract

Prior work has modeled individuals’ migration and remittance behavior separately, and reported mixed empirical support for various remittance motivations. This study offers an integrated approach, and considers migration as a mechanism for selection in a censored probit model of remittance behavior. This approach leads to different conclusions about the determinants of remittance behavior in the Thai internal migration setting. To the extent that these determinants capture different remittance motivations, as prior research has presumed, the analysis also provides varying support for these motivations. These results suggest that migration and remittance behavior are interrelated, and it is crucial for an analysis of remittance behavior to control for the selectivity of migration.

Keywords

Migration Remittances Selectivity Thailand 

References

  1. Achen, C. (1986). The statistical analysis of quasi-experiments. University of California PressGoogle Scholar
  2. Adams, R. (1989). Worker remittances and inequality in rural Egypt. Economic Development and Cultural Change, 38(1), 45–71.CrossRefGoogle Scholar
  3. Agarwal, R., & Horowitz, A. W. (2002). Are international remittances altruism or insurance? Evidence from Guyana using multiple-migrant households. World Development, 30(11), 2033–2044.CrossRefGoogle Scholar
  4. Ahlburg, D., & Brown, R. (1998). Migrants’ intentions to return home and capital transfers: A study of Tongans and Samoans in Australia. Journal of Development Studies, 35(2), 125–151.CrossRefGoogle Scholar
  5. Banerjee, B. (1984). The probability, size and uses of remittances from urban to rural areas in India. Journal of Development Economics, 16(3), 293–311.CrossRefGoogle Scholar
  6. Berk, R. (1983). An introduction to sample selection bias in sociological data. American Sociological Review, 48(3), 386–398.CrossRefGoogle Scholar
  7. Boyes, W., Hoffman, D., & Low, S. (1989). An econometric analysis of the bank credit scoring problem. Journal of Econometrics, 40(1), 3–14.CrossRefGoogle Scholar
  8. Cai, Q. (2003). Migrant remittances and family ties: A case study in China. International Journal of Population Geography, 9(6), 471–483.CrossRefGoogle Scholar
  9. Card, D. (1993). Using geographic variation in college proximity to estimate the return to schooling. NBER working paper.Google Scholar
  10. Carling, J. (2008). The determinants of migrant remittances. Oxford Review of Economic Policy, 24(3), 581–598.CrossRefGoogle Scholar
  11. Chamratrithirong, A., Archavanitkul, K., Richter, K., Guest, P., Thongthai, V., Bonochalaksi, W., et al. (1995). National migration survey of Thailand. Nakonpathom: Institute for Population and Social Research, Mahidol University.Google Scholar
  12. Cox, D. (1987). Motives for private income transfers. The Journal of Political Economy, 95(3), 508–546.CrossRefGoogle Scholar
  13. Cox, D., Eser, Z., & Jimenez, E. (1998). Motives for private transfers over the life cycle: An analytical framework and evidence for Peru. Journal of Development Economics, 55(1), 57–80.CrossRefGoogle Scholar
  14. Cox, D., & Jimenez, E. (1990). Achieving social objectives through private transfers: A review. The World Bank Research Observer, 5(2), 205–218.CrossRefGoogle Scholar
  15. Curran, S., Garip, F., Chung, C., & Tangchonlatip, K. (2005). Gendered migrant social capital: Evidence from Thailand. Soc. F., 84, 225.CrossRefGoogle Scholar
  16. de la Briere, B., Sadoulet, E., De Janvry, A., & Lambert, S. (2002). The roles of destination, gender, and household composition in explaining remittances: An analysis for the Dominican Sierra. Journal of Development Economics, 68(2), 309–328.CrossRefGoogle Scholar
  17. Dubin, J., & Rivers, D. (1989). Selection bias in linear regression, logit and probit models. Sociological Methods and Research, 18(2), 360–390.CrossRefGoogle Scholar
  18. Durand, J., Kandel, W., Parrado, E. A., & Massey, D. S. (1996a). International migration and development in Mexican communities. Demography, 33(2), 249–264.CrossRefGoogle Scholar
  19. Durand, J., Parrado, E., & Massey, D. (1996b). Migradollars and development: A reconsideration of the Mexican case. International Migration Review, 30(2), 423–444.CrossRefGoogle Scholar
  20. Foster, A., & Rosenzweig, M. (2001). Imperfect commitment, altruism, and the family: Evidence from transfer behavior in low-income rural areas. Review of Economics and Statistics, 83(3), 389–407.CrossRefGoogle Scholar
  21. Fuchs-Schuendeln, N., & Schuendeln, M. (2009). Who stays, who goes, who returns? East-West migration within Germany since reunification. Economics of Transition, 17(3), 703–738.CrossRefGoogle Scholar
  22. Funkhouser, E. (1995). Remittances from international migration: A comparison of El Salvador and Nicaragua. The Review of Economics and Statistics, 77(1), 137–146.CrossRefGoogle Scholar
  23. Garip, F. (2008). Social capital and migration: How do similar resources lead to divergent outcomes? Demography, 45(3), 591–617.CrossRefGoogle Scholar
  24. Garip, F. (2012). The impact of migration and remittances on wealth accumulation and distribution in rural Thailand. In Weatherhead Center for International Affairs Working Paper. Harvard University.Google Scholar
  25. Garip, F., & Curran, S. (2010). Increasing migration, diverging communities: Changing character of migrant streams in rural Thailand. Population Research and Policy Review, 29(5), 659–685.CrossRefGoogle Scholar
  26. Heckman, J. (1979). Sample selection bias as a specification error. Econometrica: Journal of the Econometric Society, 47(1), 153–161.Google Scholar
  27. Hoddinott, J. (1994). A model of migration and remittances applied to western Kenya. Oxford Economic Papers, 46(3), 459–476.Google Scholar
  28. Jansen, K. (1997). External finance in Thailand’s development: An interpretation of Thailand’s growth boom. New York, NY: St Martin’s Press.Google Scholar
  29. Johnson, G., & Whitelaw, W. (1974). Urban-rural income transfers in Kenya: An estimated-remittances function. Economic Development and Cultural Change, 22(3), 473–479.CrossRefGoogle Scholar
  30. Jones, R. C. (1998). Remittances and inequality: A question of migration stage and geographic scale. Economic Geography, 74(1), 8–25.CrossRefGoogle Scholar
  31. Lauby, J., & Stark, O. (1988). Individual migration as a family strategy: Young women in the Philippines. Population Studies, 42(3), 473–486.CrossRefGoogle Scholar
  32. Lee, Y., Parish, W., & Willis, R. (1994). Sons, daughters, and intergenerational support in Taiwan. American Journal of Sociology, 99(4), 1010–1041.CrossRefGoogle Scholar
  33. Lillard, L., & Willis, R. (1997). Motives for intergenerational transfers: Evidence from Malaysia. Demography, 34(1), 115–134.CrossRefGoogle Scholar
  34. Little, R. J. (1985). A note about models for selectivity bias. Econometrica, 53(6), 1469–1474.CrossRefGoogle Scholar
  35. Lowell, B. L., & de la Garza, R. O. (2002). The development role of remittances in U.S. Latino communities and Latin America. In R. de la Garza & B. L. Lowell (Eds.), Sending money home: Hispanic Remittances and community development (pp. 3–27). Lanham, MD: Rowman and Littlefield.Google Scholar
  36. Lucas, R., & Stark, O. (1985). Motivations to remit: Evidence from Botswana. The Journal of Political Economy, 93, 901–918Google Scholar
  37. Massey, D., & Basem, L. (1992). Determinants of savings, remittances, and spending patterns among US migrants in four Mexican communities. Sociological Inquiry, 62(2), 185–207.CrossRefGoogle Scholar
  38. Massey, D. S., Goldring, L., & Durand, J. (1994). Continuities in transnational migration: An analysis of nineteen mexican communities. American Journal of Sociology, 99(6), 1492–1533.CrossRefGoogle Scholar
  39. Meng, C., & Schmidt, P. (1985). On the cost of partial observability in the bivariate probit model. International Economic Review, 26(1), 71–85.CrossRefGoogle Scholar
  40. Mills, M. (1997). Contesting the margins of modernity: Women, migration, and consumption in Thailand. American Ethnologist, 24(1), 37–61.CrossRefGoogle Scholar
  41. Moffitt, R. (2003). Causal analysis in population research: An economist’s perspective. Population and Development Review, 29(3), 448–458.CrossRefGoogle Scholar
  42. Mora, J. J. (2005). The impact of migration and remittances on distribution and sources of income. United Nations Population Division Working Paper.Google Scholar
  43. Phongpaichit, P., & Baker, C. (1996). Thailand’s boom!. New South Wales: Allen and Unwin.Google Scholar
  44. Piotrowski, M. (2006). The effect of social networks at origin communities on migrant remittances: Evidence from Nang Rong District. European Journal of Population/Revue Europienne de Demographie, 22(1), 67–94.CrossRefGoogle Scholar
  45. Poirine, B. (1997). A theory of remittances as an implicit family loan arrangement. World Development, 25(4), 589–611.CrossRefGoogle Scholar
  46. Rapoport, H., & Docquier, F. (2006). The economics of migrants’ remittances. Handbook on the Economics of Giving, Reciprocity and Altruism, 2, 1135–1198.CrossRefGoogle Scholar
  47. Ratha, D., & Xu, Z. (2008). Migration and remittances factbook 2008. Washington, DC: World Bank Publications.CrossRefGoogle Scholar
  48. Reardon, T. (1997). Using evidence of household income diversification to inform study of the rural nonfarm labor market in Africa. World Development, 25(5), 735–747.CrossRefGoogle Scholar
  49. Reed, W. (2000). A unified statistical model of conflict onset and escalation. American Journal of Political Science, 44(1), 84–93.CrossRefGoogle Scholar
  50. Regmi, G., & Tisdell, C. (2002). Remitting behaviour of Nepalese rural-to-urban migrants: Implications for theory and policy. Journal of Development Studies, 38(3), 76–94.CrossRefGoogle Scholar
  51. Rempel, H., & Lobdell, R. (1978). The role of urban-to-rural remittances in rural development. Journal of Development Studies, 14(3), 324–341.CrossRefGoogle Scholar
  52. Rindfuss, R., Kaneda, T., Chattopadhyay, A., & Sethaput, C. (2007). Panel studies and migration. Social Science Research, 36, 374–403.CrossRefGoogle Scholar
  53. Rosenzweig, M. (1988). Risk, implicit contracts and the family in rural areas of low-income countries. The Economic Journal, 98(393), 1148–1170.CrossRefGoogle Scholar
  54. Russell, S. (1986). Remittances from international migration: a review in perspective. World Development, 14(6), 677–696.CrossRefGoogle Scholar
  55. Sana, M. (2005). Buying membership in the transnational community: migrant remittances, social status, and assimilation. Population Research and Policy Review, 24, 231–261.CrossRefGoogle Scholar
  56. Spencer, D. F., & Berk, K. T. (1981). A limited information specification test. Econometrica, 49, 1079–1085.CrossRefGoogle Scholar
  57. Staiger, D., & Stock, J. H. (1997). Instrumental variables regression with weak instruments. Econometrica, 65(3), 557–586.CrossRefGoogle Scholar
  58. Stark, O. (1991). The migration of labor. Cambridge, MA: Basil Blackwell.Google Scholar
  59. Stark, O., & Bloom, D. (1985). The new economics of labor migration. The American Economic Review, 75(2), 173–178.Google Scholar
  60. Stark, O., & Levhari, D. (1982). On migration and risk in LDCs. Economic Development and Cultural Change, 31(1), 191–196.CrossRefGoogle Scholar
  61. Taylor, J. (1999). The new economics of labour migration and the role of remittances in the migration process. International Migration, 37(1), 63–88.CrossRefGoogle Scholar
  62. Taylor, J., Arango, J., Hugo, G., Kouaouci, A., Massey, D., & Pellegrino, A. (1996). International migration and national development. Population Index, 62(2), 181–212.CrossRefGoogle Scholar
  63. Taylor, J., Rozelle, S., & De Brauw, A. (2003). Migration and incomes in source communities: A new economics of migration perspective from China*. Economic Development and Cultural Change, 52, 75–101.CrossRefGoogle Scholar
  64. van de Ven, W., & van Praag, B. (1981). The demand for deductibles in private health insurance: A probit model with sample selection. Journal of Econometrics, 17(2), 229–252.CrossRefGoogle Scholar
  65. VanWey, L. (2003). Land ownership as a determinant of temporary migration in Nang Rong, Thailand. European Journal of Population, 19(2), 121–145.CrossRefGoogle Scholar
  66. VanWey, L. K. (2004). Altruistic and contractual remittances between male and female migrants and households in rural Thailand. Demography, 41(4), 739–756.CrossRefGoogle Scholar
  67. Warr, P., & Nidhiprabha, B. (1996). Thailand’s macroeconomic miracle: Stable adjustment and sustained growth. Washington, DC: World Bank Press.CrossRefGoogle Scholar

Copyright information

© Springer Science+Business Media B.V. 2012

Authors and Affiliations

  1. 1.Department of SociologyHarvard UniversityCambridgeUSA

Personalised recommendations