Remittances and the Economic Crisis : Evidence from the Greenback 2.0 Survey in Italy
Monetary remittances represent the most visible transnational activity of migrants and can be considered as a function of migrant’s ability of producing savings from income and of remitting (supply side), and of the type of claims of family members...
| Main Authors: | , |
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2015
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2015/05/24438302/remittances-economic-crisis-evidence-greenback-20-survey-italy-remittances-economic-crisis-evidence-greenback-20-survey-italy http://hdl.handle.net/10986/21918 |
| Summary: | Monetary remittances represent the most
visible transnational activity of migrants and can be
considered as a function of migrant’s ability of producing
savings from income and of remitting (supply side), and of
the type of claims of family members, either left in the
country of origin or residing abroad with the migrant
(demand side). Hence, migrant’s remitting capacity is
directly linked to the level of economic integration at
destination. However, what happens to remittances when the
labor market becomes uncertain and the earning potential
decreases? Based on a recent survey, this paper explores the
effect of the economic crisis on income trends and on the
flow of monetary remittances sent to the families left home
among three surveyed groups in Turin, Moroccans, Peruvians
and Romanians. Results show a widespread worsening of the
average economic conditions since the outbreak of the crisis
in 2008. The protracted economic instability seems to have
effects on migrants’ ability to keep remittance flows
constant over time, with differentiated outcomes according
to the national groups. While Moroccans show a higher
propensity in receiving remittances, Peruvians are those who
resist more to a remittance drop over the last five years.
Beyond economic determinants, observed patterns in
remittance trends can also be explained by migrant household
characteristics in Italy and abroad and to unobserved
variables (distance) related to the country of origin. |
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