NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Asymmetric Information and Remittances: Evidence from Matched Administrative Data

Thomas Joseph, Yaw Nyarko, Shing-Yi Wang

NBER Working Paper No. 20986
Issued in February 2015
NBER Program(s):   DEV

Using new data matching remittances and monthly payroll disbursals, we demonstrate how fluctuations in migrants' earnings in the United Arab Emirates affect their remittances. We consider three types of income fluctuations that are observable by families at home: seasonalities, weather shocks and a labor reform. Remittances move with all of these income changes. Remittances do not move with an individual's growth in earnings over time. The slope of the relationship between earnings and time in the UAE varies across individuals and is not easy to observe by families. Thus, a key characteristic that drives remittance behavior is the observability of income rather than other features of these fluctuations. The results are consistent with a private information model where remittances are viewed by the migrant worker as payments to their families in an income-sharing contract.

You may purchase this paper on-line in .pdf format from SSRN.com ($5) for electronic delivery.

Access to NBER Papers

You are eligible for a free download if you are a subscriber, a corporate associate of the NBER, a journalist, an employee of the U.S. federal government with a ".GOV" domain name, or a resident of nearly any developing country or transition economy.

If you usually get free papers at work/university but do not at home, you can either connect to your work VPN or proxy (if any) or elect to have a link to the paper emailed to your work email address below. The email address must be connected to a subscribing college, university, or other subscribing institution. Gmail and other free email addresses will not have access.

E-mail:

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w20986

Users who downloaded this paper also downloaded* these:
Galí and Gambetti w19981 The Effects of Monetary Policy on Stock Market Bubbles: Some Evidence
Dix-Carneiro and Kovak w20912 Trade Liberalization and the Skill Premium: A Local Labor Markets Approach
Ambler, Aycinena, and Yang w20262 Channeling Remittances to Education: A Field Experiment Among Migrants from El Salvador
Badia-Miró, Carreras-Marín, and Meissner w20790 Geography, Policy, or Productivity? Regional Trade in five South American Countries, 1910-1950
Manova and Yu w18561 How Firms Export: Processing vs. Ordinary Trade with Financial Frictions
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us