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Author DeVoretz, Don J. ♦ Vadean, Florin P.
Source EconStor
Content type Text
Publisher Institute for the Study of Labor (IZA)
File Format PDF
Language English
Subject Domain (in DDC) Social sciences ♦ Economics
Subject Keyword immigration ♦ remittances ♦ Labor Turnover; Vacancies; Layoffs ♦ Economic Development: Human Resources; Human Development; Income Distribution; Migration
Abstract This paper models financial transfers outside the household for both the Canadian-born and foreign-born Canadian populations in a traditional expenditure framework. Using survey data we estimate transfer functions as part of a larger expenditure system and calculate Engel elasticities for remittances by both the Canadian and foreign-born populations. We conclude that transfers outside the household are a normal good for recent Asian immigrants and a luxury good for all other immigrants and Canadians. Immigrant transfers upon arrival are greater than Canadian-born transfers indicating a strong entry effect. Assimilation or convergence to the Canadian-born norm over time is however very slow. We also find evidence of negative foreign-born transfers as sending country households remit to Canadian immigrant households. Finally, all foreign-born groups generally consider remittances to charitable organizations a greater necessity than inter-household transfers.
Part of series IZA Discussion Papers x1714
Learning Resource Type Article
Publisher Date 2005-01-01
Publisher Place Bonn
Rights Holder