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Identification and remittances
7th
ERNOP Conference
July 10, 2015
ESSEC Business School, Paris, France
Does integration hinder immigrant giving to
the country of origin?
Authors

Arjen de Wit, VU University Amsterdam

Daisha M. Merritt, James Madison University

Sabith Khan, Virginia Tech
Remittances

Private transfers from immigrants to country of
origin

Mostly to family members

Altruistic, exchange, strategic, insurance and/or
investment motives (Lucas & Stark 1985;
Rapoport & Docquier 2006)

Is this a form of philanthropy?
The data

The Giving in the Netherlands Immigrant Survey
(GINIS) 2008

Five non-western migrant groups: Turkish,
Moroccan, Surinamese, Antillean, Afghan

N = 564

CAWI and CAPI
Immigration in the Netherlands

1960s: 'guest workers' from Southern Europe
and Northern Africa

1970s: increase in migration from (former)
colonies in Caribbean

2000s/2010s: migration from Eastern European
Union
Migrant groups in the Netherlands
Turkish origin 396,414
Moroccan origin 374,996
Surinamese origin 348,291
Antillean origin 146,855
Afghan origin 43,183
Non-western migrants 1,997,584
Total population 16,829,289
No decay in % of people remitting
Years living in the Netherlands
Amount remitted
increases/decreases/increases
€
Years living in the Netherlands
How can decay be explained?

Identification model (Schervisch & Havens 1997)

Philanthropic giving partly determined by
communities people participate in and the way
people view society

Is this applicable to remittances giving?
Results
Total (0/1) Family (0/1) Total (€) Family (€)
Logistic Logistic OLS OLS
Years in NL 0.004 -0.005 -5.166 -5.005
Contact in country
of origin
2.173*** 2.274*** 181.900 182.798
Contact Dutch
friends
-0.042 -0.102 -60.709 -38.453
Volunteer in NL 0.290 0.208 -29.240 -64.803
Dislike Dutch
friends
-0.107 -0.100 -110.400 -107.906
Dislike Dutch
partner
0.118 0.071 -7.434 -3.525
How likely you
return
0.139* 0.158** -11.873 -43.537
*** p<0.01, ** p<0.05, * p<0.1. Controlled for ethnicity, age, gender, religion, household size, education, marital
status and income.
Summing up

No decay in remittances giving

Immigrants who are in touch with country of
origin more likely to give remittances

Immigrants who intent to return more likely to
give remittances

Integration in new country not related to
remittances giving
Does integration hinder immigrant
giving to the country of origin?

Not necessarily

(Sense of) belonging to community in country of
origin determines remittances giving
Considerations

People give remittances because they want to
show off

International money transfers have become
easier

TV and other media raise awareness of need

Some diaspora have increasingly strong shared
identity

There might be a difference between first and
second generation immigrants
Thank you!

Arjen de Wit, VU University Amsterdam

Daisha M. Merritt, James Madison University

Sabith Khan, Virginia Tech

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Identification and remittances

  • 1. Identification and remittances 7th ERNOP Conference July 10, 2015 ESSEC Business School, Paris, France Does integration hinder immigrant giving to the country of origin?
  • 2. Authors  Arjen de Wit, VU University Amsterdam  Daisha M. Merritt, James Madison University  Sabith Khan, Virginia Tech
  • 3. Remittances  Private transfers from immigrants to country of origin  Mostly to family members  Altruistic, exchange, strategic, insurance and/or investment motives (Lucas & Stark 1985; Rapoport & Docquier 2006)  Is this a form of philanthropy?
  • 4. The data  The Giving in the Netherlands Immigrant Survey (GINIS) 2008  Five non-western migrant groups: Turkish, Moroccan, Surinamese, Antillean, Afghan  N = 564  CAWI and CAPI
  • 5. Immigration in the Netherlands  1960s: 'guest workers' from Southern Europe and Northern Africa  1970s: increase in migration from (former) colonies in Caribbean  2000s/2010s: migration from Eastern European Union
  • 6. Migrant groups in the Netherlands Turkish origin 396,414 Moroccan origin 374,996 Surinamese origin 348,291 Antillean origin 146,855 Afghan origin 43,183 Non-western migrants 1,997,584 Total population 16,829,289
  • 7. No decay in % of people remitting Years living in the Netherlands
  • 9. How can decay be explained?  Identification model (Schervisch & Havens 1997)  Philanthropic giving partly determined by communities people participate in and the way people view society  Is this applicable to remittances giving?
  • 10. Results Total (0/1) Family (0/1) Total (€) Family (€) Logistic Logistic OLS OLS Years in NL 0.004 -0.005 -5.166 -5.005 Contact in country of origin 2.173*** 2.274*** 181.900 182.798 Contact Dutch friends -0.042 -0.102 -60.709 -38.453 Volunteer in NL 0.290 0.208 -29.240 -64.803 Dislike Dutch friends -0.107 -0.100 -110.400 -107.906 Dislike Dutch partner 0.118 0.071 -7.434 -3.525 How likely you return 0.139* 0.158** -11.873 -43.537 *** p<0.01, ** p<0.05, * p<0.1. Controlled for ethnicity, age, gender, religion, household size, education, marital status and income.
  • 11. Summing up  No decay in remittances giving  Immigrants who are in touch with country of origin more likely to give remittances  Immigrants who intent to return more likely to give remittances  Integration in new country not related to remittances giving
  • 12. Does integration hinder immigrant giving to the country of origin?  Not necessarily  (Sense of) belonging to community in country of origin determines remittances giving
  • 13. Considerations  People give remittances because they want to show off  International money transfers have become easier  TV and other media raise awareness of need  Some diaspora have increasingly strong shared identity  There might be a difference between first and second generation immigrants
  • 14. Thank you!  Arjen de Wit, VU University Amsterdam  Daisha M. Merritt, James Madison University  Sabith Khan, Virginia Tech