Working paper abstract

#2013-037

The links between economic integration and remittances behaviour of migrants in the Netherlands

Özge Bilgili

In a time of economic downturn and the recession in Europe, a migrant's labour market position is even more precarious, and may influence their economic homeland engagement. Based on the IS Academy, Migration and Development: A World in Motion Project survey data , I focus on Afghan, Burundian, Ethiopian and Moroccan first generation migrants in the Netherlands, and explore how their economic integration is related to different aspects of their economic remittances behaviour. The main objectives of this paper can be summarized as follows: 1) to describe migrants' labour market performance; 2) to designate migrants' economic remittances behaviour with a focus on propensity to remit, amount of remittances and reason for remitting; and 3) to discuss how labour market performance relates to migrants' economic homeland engagement. In line with the resource dependent transnationalism argument, this paper concludes that economic integration is positively linked to propensity to remit and the amount of remittances sent. Moreover, I show that especially those with a secure employment status are more likely to remit, remit more and remit more for investment purposes rather than consumption. The paper starts out with a literature review on economic transnationalism and a description of the hypotheses. Next, the data and methods used are explained in detail. Subsequently, the descriptive and analytical results of the paper are presented, followed by a concluding section.

Keywords: migrants in the Netherlands, economic remittances, economic integration, transnationalism

JEL classification: F22, J15, J61