Immigrant Remittances, Stability of Employment and Relative Deprivation

Abstract

AbstractThis paper examines the factors affecting immigrant remittances on the basis of the experience of immigrants to Greece. In addition to factors commonly used in similar analyses, we examine two new ones: stability of employment and relative deprivation. Our results show that the stability of employment has no significant effect on the decision to remit, while relative deprivation does. Immigrants from less relatively deprived families are more likely to send money back home. As for their effects on the size of remittances, our results show that the relative deprivation variable is insignificant, while those in steady jobs remit less money than those employed in unsteady jobs. The latter finding suggests that fluctuations in migrant employment and migrant income are borne by migrants themselves, whose goal appears to be to secure a steady flow of remittances to country of origin. This type of remittance behaviour has implications for the interpretation of volatility in remittance flows to migrant–sending countries. Specifically, variation in flows may be attributable to changes in the numbers of migrants and not only to changes in the economic and employment conditions in destination countries.