Linking Financial Capability, Advice, Anxiety, Social Security, and Residential Status with Outward Remittances: Evidence from the UAE

Abstract

The article empirically analyzes the effects of residential status and social security on migrant workers’ remittance outflow, linking it with financial literacy concepts such as financial capability, financial advice, and financial anxiety. The study’s originality lies in its empirical examination of financial literacy constructs, residency, and social security using partial least squares structural equation modeling to examine data collected from a closed-ended questionnaire in the United Arab Emirates (UAE). The results provide significant insights for policymakers and service providers in a country with the second-largest outflow of remittances in the world and indicate that, except for financial advice, all other factors have a substantial impact on remittance activity.