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Does altruism matter for remittances?


Antoniades, Alexis; Seshan, Ganesh; Weber, Roberto A; Zubrickas, Robertas (2018). Does altruism matter for remittances? Oxford Economic Papers, 70(1):225-242.

Abstract

We provide a direct test of the impact of altruism on remittances. From a sample of Indian migrant workers in Qatar, we elicit the propensity to share with others from their responses in a dictator game and use it as a proxy for altruism. For the entire sample, we find that altruism does not seem to matter. However, we document a strong positive relationship between altruism and remittances for a subset of migrants with a loan obligation, whereas indirect tests of altruism, typically used in the literature, would fail to establish this relationship. We explain the role of loan obligations with a standard remittance model extended with reference-dependent preferences.

Abstract

We provide a direct test of the impact of altruism on remittances. From a sample of Indian migrant workers in Qatar, we elicit the propensity to share with others from their responses in a dictator game and use it as a proxy for altruism. For the entire sample, we find that altruism does not seem to matter. However, we document a strong positive relationship between altruism and remittances for a subset of migrants with a loan obligation, whereas indirect tests of altruism, typically used in the literature, would fail to establish this relationship. We explain the role of loan obligations with a standard remittance model extended with reference-dependent preferences.

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Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Economics
Dewey Decimal Classification:330 Economics
Uncontrolled Keywords:Criteria for Decision-Making under Risk and Uncertainty, Microeconomic Analyses of Economic Development, Human Resources, Human Development, Income Distribution, Migration
Language:English
Date:January 2018
Deposited On:26 Jan 2018 16:51
Last Modified:20 Feb 2018 09:05
Publisher:Oxford University Press
ISSN:0030-7653
OA Status:Closed
Publisher DOI:https://doi.org/10.1093/oep/gpx035

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