Why do migrants remit? Testing hypotheses for the case of Morocco

Abstract

Abstract: We use Moroccan data to study the determinants of international migrants’ remittances, testing the altruistic and welfare hypotheses. In particular, we analyze and assess what motivates migrants to send remittances back home. Our results lend support to the altruistic hypothesis suggesting that remittances are sent to households with low levels of welfare. Furthermore, the decision to remit is intensely associated to individual characteristics such as migrant income, gender and age. Likewise, remittances may be viewed as loan repayment if the migration costs were borne by the remittance-receiving family. JEL classification: F22, J61, D1, D91, O55.