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Measuring Remittances.

Giuseppe De Arcangelis1, Alexander Fertig2, Yuna Liang3

  • 1Department of Social Sciences and Economics, Sapienza University of Rome.

Journal of Development Economics
|March 6, 2023
PubMed
Summary

International migrants in the UAE under-report remittances to the Philippines. Recipient reports are significantly lower than migrant reports, especially with less frequent or smaller income share remittances.

Keywords:
MigrationRemittancesSurvey Methodology

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Area of Science:

  • Microeconomics
  • International Migration Studies
  • Development Economics

Background:

  • Remittances are crucial financial flows from international migrants to their home countries.
  • Accurate measurement of remittance flows is vital for microeconomic analysis and policy.
  • The United Arab Emirates (UAE) is a major source of global remittances.

Purpose of the Study:

  • To measure misreporting of remittances between migrants in the UAE and recipients in the Philippines.
  • To compare remittance data from administrative records, migrant surveys, and recipient surveys.
  • To assess the effectiveness of a smartphone app in improving remittance reporting accuracy.

Main Methods:

  • Utilized administrative transaction data from a money transfer operator (MTO).
  • Conducted surveys with migrant clients of the MTO and their remittance recipients.
  • Employed a custom smartphone application for remittance reporting by migrants.

Main Results:

  • Migrant-reported remittances were only 6% lower than MTO administrative records, showing good agreement.
  • A dedicated smartphone app did not improve the accuracy of migrant remittance reporting.
  • Recipient-reported remittances were, on average, 23% lower than migrant reports.
  • Recipient under-reporting increased with less frequent remittances and when remittances formed a smaller household income share.

Conclusions:

  • Migrant self-reports are relatively accurate compared to administrative data.
  • Recipient-side reporting introduces significant downward bias in remittance data.
  • Factors like remittance frequency and income share influence recipient reporting accuracy.