The Transfer of the Remittance Fee from the Migrant to the Household

Abstract

JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org. Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at Abstract This paper discusses the problem of increasing remittances. It is often argued that the remittance fee needs to be lowered to increase remittances. We show that remittances become larger by increasing the receiving fee whereas they become larger by reducing the sendingfee. We also show that, by transferring the sending fee from the migrant to the household, remittances become larger than those without the transfer It is shown that for this purpose the home country government can collect the sendingfee from the household as taxes, and to pay it to the migrant as a subsidy-JEL Classification: D64, F22, F24