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in Nicaragua and El Salvador. This trend of migrant investment in homecountries is likely to continue.10. Transfers: Market Conditions in the United StatesThe value of remittances has not yet been fully realized because of aseries of problems in both the United States and Latin America. Someof the problems are distinct to the U.S., some are distinct to the LatinAmerican region, and others overlap between the U.S. and Latin America.These problems include the high cost of remittances, underutilization ofsavings and credit institutions, limited competition, lack of accounting,and inadequate leveraging of remittances in local communities. These areimpediments of a transnational nature; that is, they affect both sender andrecipient in countries of origin and of destination. Importantly, however,these problems can and should be addressed through a series of policychanges.Costs: While the greatest cost of migration is almost certainly emotional andfamilial, the financial cost of sending monies is also extremely important.As explained above, immigrants frequently send significant amounts ofmoney, generally once a month, and typically in amounts ranging from$150 to $400. These amounts are a considerable percentage of income formigrants who are mostly low-wage workers.To get this money to their families, most immigrants use some form ofintermediation, whether formal or informal. These intermediaries includemoney transfer agencies, small businesses, banks, or even individualentrepreneurs. Using intermediaries, a necessity for most senders, hascosts associated with it. Costs of sending typically range between 4 and 10percent of the value sent. This cost is expensive, especially considering thatmore economic and value-added options exist, such as the use of savingsand credit institutions or debit cards, as noted later in the discussion ofpolicy alternatives.326The cost of sending remittances generally reflects two components: a feeto send the money plus a commission on the exchange rate of the quantityconverted into local currency. The former is mostly U.S. policy, and thelatter by policy considerations in Latin America and the Caribbean. Thefigures below show total average transfer costs to send remittances totwenty-three Latin American and Caribbean countries from the UnitedStates. The numbers refer to information based on data gathered from thefifty largest companies operating in the different countries in the Western
Hemisphere. Figure 7 refers to the cost of sending $200 (about 40 percentof immigrants send $200), and Figure 8 shows the cost of sending theaverage remittance sent for particular countries.Figure 7: Cost to send $200 from the U.S. to Home CountrySource: Data compiled by the author. See methodology at end of document.327
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The opinions expressed in the repor
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Table of ContentsForeword1 Migratio
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Foreword
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UN recorded that 61 million migrant
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about this and other programmes. Se
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Introduction
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overseas ethnic markets; and the wa
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labor migration. This narrower topi
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narrowing income inequalities withi
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and 2004 has increased the urban po
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Connecting Internaland Internationa
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it comes to questions of migration
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internal and international migratio
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the larger cities. British ships we
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states. At present, as part of our
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36and one on international migratio
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perspective 3 that gives methodolog
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commercial, industrial and service
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taken place in migration flows. The
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to what was left of the original en
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sought refuge in Lima. It was not p
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husband who sought refuge and work
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that take place between migrants an
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to the flows of goods, resources an
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migration and close to Huancayo) or
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In some cases, families would regul
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Furthermore, the precise compositio
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This suggests that, instead of aimi
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Brynes, D.M.2003 Driving the State:
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1984 Miners, Peasants and Entrepren
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Werbner, P.1990 The Migration Proce
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Genealogy 1: Jiménez Family in 197
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Since the 1990s, there has been a b
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migrant receiving areas, 2 but focu
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well as discussing some of the cons
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carried to Ghana by migrants. 40 pe
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Table 2. Cost (in Euro) of Formal a
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home countries, for example, throug
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These insurance events can constitu
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Having people collect similar data
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people they knew. In fact, some of
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For migration research, this means
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ReferencesAppadurai, A.1996 Moderni
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Glick Schiller, N., and G. Fouron19
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Marcus, G.1995 “Ethnography in/of
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Portes, A., and J. DeWind2004 “A
Page 100 and 101:
Stark, O., and D. Bloom1985 “The
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AppendixTable A.1. Two-country Tran
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initially entails high costs and ri
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To our knowledge, no study has esti
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2.1 Remittances and Income in Rural
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with its neat correspondence to the
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let z > 0 denote the predetermined
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Table 3. Gini Decomposition by Inco
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Table 4b. Gini Decomposition by Inc
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3.2 Effects of Migrant Remittances
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4. ConclusionsOur findings using na
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Knowles, J.C., and R.B. Anker1981
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Taylor, J.E.1992 “Remittances and
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124Table 2. Rural Mexico Household
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Central Region45Percentage of Villa
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128Figure 3. Relationship between P
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7Labor Market Flooding? Migrant Des
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Reibel (1997); David Card (2001); a
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The net immigration rate can be tak
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is S 0. It establishes an equilibri
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consequence a highly elastic supply
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in the populous fourteen states of
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out were both at work in this case
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Figure 7 identifies what we call
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Figure 9. Total Net In-Migration an
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Figure 10. Dynamic Economy ModelFig
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6. ConclusionThe dynamic and open e
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ReferencesAbowd, J.M., and R. Freem
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1999 “Historical perspectives on
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Hatton, T., and J.G. Williamson1998
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White, M.J. and Y. Imai1994 “The
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seasonal basis, to areas with more
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for agricultural labor were 15 and
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3. Why People MoveThe decision to m
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producers are facing heavy losses a
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in Mumbai, which capitalizes on peo
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In conclusion, migration can bring
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is also being experienced in many r
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ReferencesBal Kumar, K.C.2003 “Mi
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Lipton, M.1980 “Migration from ru
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Shylendra, H.S., and P. Thomas1995
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182Able-bodied men.Women migrateonl
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Majority of (ST)Baiga and Ghondsmig
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Single caste villageof (OBC) Dhimar
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9A Socio-Cultural Perspective on Mi
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of households reported having at le
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Drawing on these perspectives, I ar
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migration tend to imitate the behav
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What is presented below is therefor
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ate of exchange and was thus sent t
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which was an important consideratio
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some migrants had started chitties,
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The extended family constituted a c
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much individuals had “locked up i
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edistribution were enforced through
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and the definition of status in eac
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perceived, the status-seeking activ
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Engelbrektsson, U.1978 The force of
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Parry, J. and M. Bloch1989 “Intro
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10Migrant Workers’ Remittances an
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in labor migration emerged after, a
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husband and wife, four daughters an
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(Table 3). In the central and weste
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Table 5. Composition of Rural House
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Figure 3. Rural households’ Net I
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schistosomiasis, etc. This decline
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of them deposit the money in a bank
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to train new rural migrants in the
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Figure 4. Per Capita Temittance in
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ReferencesBai Nansheng et al.2002
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Lu Mai et al.2002 “Zhongguo nongc
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Xinhuanet2002 “Woguo Zhongxibu la
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agriculture (Cook 1999), producing
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evenue (MR) minus the marginal cost
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Before reform, the annual quota of
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Table 2 Regional Distribution of In
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Figure 3. Sources of China’s Econ
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migration are removed, all wage and
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urban-biased policies persisted, pr
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eform. Under the hukou system, Chin
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The institutional barriers faced by
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ecause of the rapid migration of th
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Migrant workers have hardly any opp
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ReferencesAu, Chun-Chung, and Verno
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Lin, Justin, Gewei Wang, and Yaohui
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12International Migration and Devel
Page 277 and 278: 2. BackgroundThe recent rise in int
Page 279 and 280: of remittances: self-employment, a
Page 281 and 282: Given the size of recent emigration
Page 283 and 284: 5. Remittances: An OverviewTable 1
Page 285 and 286: interpret. Some of it may be caused
Page 287 and 288: 8. A Decision to Repatriate MoneyIn
Page 289 and 290: emittances in the year prior to the
Page 291 and 292: fourth one, Xiamen, is in Fujian Pr
Page 293 and 294: ReferencesAdelman, I., J.E. Taylor,
Page 295 and 296: Massey, D.1988 “International mig
Page 297 and 298: AppendixTable 1. Village-Level Remi
Page 299 and 300: Table 4. Logistic Regression Models
Page 305 and 306: 13Remittances in the Latin American
Page 307 and 308: to anti-money laundering and suspic
Page 309 and 310: Finally, mulas may be sporadic trav
Page 311 and 312: has left from countries in Western
Page 313 and 314: Table 2: Remittances and Key Econom
Page 315 and 316: Source: National Money Transmitters
Page 317 and 318: One way this redistributive effect
Page 319 and 320: Managua reported having a relative
Page 321 and 322: America have a higher rate of havin
Page 323 and 324: Table 9 Frequency of Immigrant Trav
Page 325 and 326: Guyana offers an interesting exampl
Page 327: In addition to exports of these goo
Page 331 and 332: alternatives. Five years ago, it wa
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Page 335 and 336: emittance recipients have a higher
Page 337 and 338: AppendixData Methodology on Pricing
Page 339 and 340: Fagen, P., and M. Bump2005 “Remit
Page 341: 2003 Receptores de remesas en Ecuad
Page 345 and 346: 14A Framework for Linking and Compa
Page 347 and 348: to jobs, savings, and networks that
Page 349 and 350: were expanding. That “flooding”
Page 351 and 352: ural families to repay debts, satis
Page 353 and 354: ut case studies, including that of
Page 355 and 356: would do well to examine how variou
Page 357 and 358: Carter and Sutch challenge the argu
Page 359 and 360: networks combine internal and inter
Page 361 and 362: 4. Policy ImplicationsWhat implicat
Page 363 and 364: government should improve migrant w
Page 365 and 366: challenge for development practitio
Page 367 and 368: community members could help to cla
Page 369: itself). While research and analysi
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