To what extent do migrants prefer remittances to be spent on groceries as opposed to other items, which potentially could include ―sin goods‖ such as alcohol and cigarettes?
To what extent does the above preference vary with stakes, in particular when the migrant household budget allows for a higher remittance and, therefore, more ―wiggle room‖ in the recipient household‘s budget?
Our findings suggest that overall, migrants prefer the remittance to arrive as cash as opposed to grocery vouchers. Anecdotal evidence suggests that this is because migrants like the flexibility of cash. Although they may not want recipients to use the money for alcohol or cigarettes, they may still want recipients to be able to use the money for other types of useful expenses such as school fees, medicine, and clothing.
Despite this overall effect, however, the findings also suggest that female migrants prefer to control remittances when the stakes are high ($400). In other words, at higher stakes, female migrants do prefer the remitted funds to arrive as grocery vouchers. This suggests that female migrants may want to control remittances when the household budget allows for more ―wiggle room‖ and, thus, a greater potential for the purchase of ―sin goods‖.
Plans for 2011
Establish longer term funding for a research agenda on remittances and migration. Establish linkages with external researchers who have worked on related topics, specifically Dean Yang (University of Michigan) and Pablo Acosta (World Bank).
Initiate and complete working papers on topics related to: o Remittances and crowding-out effects in recipient households. o Additional insights into migrant preferences for remittance spending.
o Additional insights into determinants of broader remittance behavior. Table 4—Subtheme 6.3: Project list 2010
No. 1. 2. Title of Project Determinants of remittances
Efficiency of the size distribution of farms in developing countries
Focus region/country Central America / El Salvador Global Duration Jun. 2009 – ongoing Oct. 2009 – Oct. 2011 Lead researcher(s) Maximo Torero Miguel Robles
Subtheme 6.3 Impact and Influences
2010 saw no significant impact for Subtheme 6.3. The Efficiency of the Size Distribution of Farms in Developing Countries project focused on fundraising efforts during this year. The working paper ―To remit or not to remit: that is the question. An experiment”was not widely circulated during 2010; it has been accepted for presentation at the 2011 Royal Economic Society meetings.
2010 Internal Program Review-Markets, Trade and Institutions Division
Page 24
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29