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On altruism and remittances


Antoniades, Alexis; Seshan, Ganesh; Weber, Roberto A; Zubrickas, Robertas (2013). On altruism and remittances. Working paper series / Department of Economics 131, University of Zurich.

Abstract

We provide a direct test of the impact of altruism on remittances. From a sample of 105 male migrant workers from Kerala, India working 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. When the entire sample is considered, we find that only migrants' income robustly explains remittances. Altruism does not seem to matter. However, we document a strong positive relationship between altruism and remittances for those migrants that report a loan obligation back home, which is nearly half the sample. 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 105 male migrant workers from Kerala, India working 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. When the entire sample is considered, we find that only migrants' income robustly explains remittances. Altruism does not seem to matter. However, we document a strong positive relationship between altruism and remittances for those migrants that report a loan obligation back home, which is nearly half the sample. 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:Working Paper
Communities & Collections:03 Faculty of Economics > Department of Economics
Working Paper Series > Department of Economics
Dewey Decimal Classification:330 Economics
JEL Classification:O12, O15, D81
Uncontrolled Keywords:Remittances, altruism, reference-dependent preferences, dictator game, Qatar
Language:English
Date:October 2013
Deposited On:16 Oct 2013 15:59
Last Modified:14 Aug 2017 15:22
Series Name:Working paper series / Department of Economics
Number of Pages:31
ISSN:1664-7041
Official URL:http://www.econ.uzh.ch/static/wp/econwp131.pdf
Related URLs:http://www.econ.uzh.ch/static/workingpapers.php

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