Immigration Policy and Remittance Behaviour

Tchuente, Guy and Piracha, Matloob and Tani, Massimiliano (2017) Immigration Policy and Remittance Behaviour. Discussion paper. IZA (The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided)

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Official URL
https://ssrn.com/abstract=3029797

Abstract

This paper analyses the impact of a change in Australia’s immigration policy, introduced in the mid-1990s, on migrants’ remittance behaviour. More precisely, we compare the remittance behaviour of two cohorts who entered Australia before and after the policy change, which consists of stricter entry requirements. Our empirical strategy uses conditional difference-in-differences in the presence of interactive fixed-effects. We first show that Bai’s (2009) least squares estimator and conditional difference-in-differences are biased if used on their own. We then derive conditions that are required to obtain a consistent estimator using a combination of conditional difference-in-differences and Bai’s (2009) least squares estimator. The results indicate that those who entered under more stringent conditions – the second cohort – have a higher probability to remit than those in the first cohort, though the policy change has no discernible effect on the level of remittances.

Item Type: Monograph (Discussion paper)
Uncontrolled keywords: immigration, treatment effect, difference-in-differences
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculties > Social Sciences > School of Economics
Depositing User: Guy Tchuente
Date Deposited: 07 Dec 2017 12:35 UTC
Last Modified: 11 Dec 2017 10:25 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/65073 (The current URI for this page, for reference purposes)
Tchuente, Guy: https://orcid.org/0000-0001-8507-3337
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