Author:
K.H. Veldman | NIDI | Netherlands
Migrants often send remittances to their origin countries, which are crucial for both their financial well-being and that of the origin country. While most studies focus on labor migrants, less is known about the remittance behavior of refugees. Demographers expect sustained refugee-inflows in the decades ahead, hence it is important to understand how their remittance behavior differs from that of non-refugee migrants. Theoretically, refugees may be less likely to remit due to lower incomes and disrupted family ties, but they could also feel a stronger motivation to send money to support family members. This study aims to study (a) who is more likely to remit; and (b) what drives different remittance behaviors between refugees and non-refugees. Additionally, we study the difference in remittance-sending between different groups of refugees. Based on Dutch survey data from four refugee groups (Afghanistan, Iran, Iraq, and Somalia, N = 3,205) and six non-refugee groups (Turkey, Morocco, Suriname, Dutch Antilles, Poland, and China, N = 6,257), we analyze differences using mediation-approaches. Our findings show that refugees are 9.4 percentage points less likely to remit than non-refugees, with this difference explained by refugees’ lower household incomes, reduced family contact, and lower homeownership rates in their origin countries. Surprisingly, refugees are not more likely to remit despite potential motivations to support their families. Additionally, we find variation within the refugee populations, with Somali refugees being the most likely to remit, followed by Afghani, Iraqi, and Iranian refugees, highlighting important variations between and within the group of refugee migrants.