Remittances, Gender and Skills : Evidence from Europe and Central Asia (ECA) Region

Abstract: This paper aims to investigate the relationship between remittance flows and the gender and skill characteristics of the migrants. By using annual data on bilateral migration and bilateral remittances between 20 OECD sending countries and 22 receiving countries from Europe and Central Asia over the period 2010-2012, a gravity model, incorporating the share of female- and the share of skilled migrants, is estimated. The model is extended by including a number of macroeconomic determinants of remittances. The main results show that remittances per capita decline with both share of female migrants and the share of the skilled migrants, and this relationship is more evident for receiving countries with relatively higher income levels. Skilled women are also found to remit smaller amounts of money relative to the unskilled ones. Thus, the study contradicts the widespread claim that females are more reliable remitters and that the negative effect of brain drain from developing countries could be mitigated by larger volumes of remittances sent by skilled migrants relative to unskilled ones. Furthermore, most of the macro variables are found to be significant and remittances show to be more responsive to the economic conditions in the source rather than in the recipient countries. The evidence on the motives to remit is rather mixed.