Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/96097
Authors: 
Docquier, Frédéric
Rapoport, Hillel
Salomone, Sara
Year of Publication: 
2011
Series/Report no.: 
Working Papers, Bar-Ilan University, Department of Economics 2011-27
Abstract: 
We investigate the relationship between remittances and migrants' education both theoretically and empirically, using original bilateral remittance data. At a theoretical level we lay out a model of remittances interacting migrants' human capital with two dimensions of immigration policy: restrictiveness, and selectivity. The model predicts that the relationship between remittances and migrants' education is ambiguous and depends on the immigration policy conducted at destination. The effect of education is more likely to be positive when the immigration policy is more restrictive and less skill-selective. These predictions are then tested empirically using bilateral remittance and migration data and proxy measures for the restrictiveness and selectivity of immigration policies at destination. The results strongly support the theoretical analysis, suggesting that immigration policies determine the sign and magnitude of the relationship between remittances and migrants' education.
Subjects: 
Remittances
Migration
Brain Drain
Immigration Policy
JEL: 
F24
F22
O15
J61
Document Type: 
Working Paper

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