13:10 - 14:50
P8-S198
Room: 0A.02
Chair/s:
Moritz Marbach
Discussant/s:
Sergi Pardos-Prado
The Paradox of Migrant Rights and Outward Remittances
P8-S198-2
Presented by: Melle Scholten
Melle Scholten
University of Virginia
How can advanced economies best promote development in emerging economies? Recent findings in development economics and political economy suggest that remittances – small monetary transfers sent by migrants to friends and family in the country of origin – are a key source of foreign currency and sustainable development for countries in the Global South. While a substantial body of literature looks at institutional determinants of inward remittances, there is comparatively little research on the determinants of outward remittances. Scholars and policymakers lack knowledge about how migrant host countries can best facilitate remittances for development. This paper argues that granting migrants more rights in the host country could paradoxically lower outward remittances despite greater access to the host labor market. This is because greater rights make permanent stay in the host country more attractive, which decreases migrants’ attachment to the home country, and makes remitting as an investment in origin communities less attractive. Using data on migrant rights and migration openness in 28 advanced democracies, the paper shows that granting migrants more political rights in the host country lowers outward remittance flows, but that expanding or restricting economic rights has comparatively little effect. Evidence comes from Imai, Kim and Wang’s (2023) time-series matching estimator. Additional evidence is provided for the following mechanism: increased political rights lead to higher levels of naturalization, severing ties with the country of origin, and diminishing incentives to remit.
Keywords: remittances, migrant rights, political economy, naturalization

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