An Integrated Analysis of Migration and Remittances: Modeling Migration as a Mechanism for Selection

Abstract

Prior work has modeled individuals’ migration and remittance behavior separately, and reported mixed empirical support for various remittance motivations. This study offers an integrated approach, and considers migration as a mechanism for selection in a censored probit model of remittance behavior. This approach leads to different conclusions about the determinants of remittance behavior in the Thai internal migration setting. To the extent that these determinants capture different remittance motivations, as prior research has presumed, the analysis also provides varying support for these motivations. These results suggest that migration and remittance behavior are interrelated, and it is crucial for an analysis of remittance behavior to control for the selectivity of migration.