Network Effects in Migrant Remi4ances Evidence from Household, Sibling and Village Ties in Nang Rong, Thailand Filiz Garip Burak Eskici Ben Snyder Harvard University
Why do migrants remit? Altruism: to improve household welfare Exchange: to buy services or secure inheritances Insurance: to diversify risks to income Investment: to repay past loans 1
Why do migrants remit? OpPon: to retain membership in community, to access new informapon on despnapon Evidence: Internal migrants in Thailand remit less to households that are not well- connected. 2
Why do migrants remit? This study: Migrants remit more (or less) if others in their social groups do. 3
Migrants remit.. if others... do. [Altruism] less in the household 4
SOCIAL GROUP MECHANISM Household Altruism Exchange Other remitters - + x Migrant potential heir + Kin or village members Relative deprivation Optionseeking Shared norms Other remitters + + x Migrant's income - Other remitters in one's social category + 5
Migrants remit.. if others... do. [Altruism] less in the household [Exchange] more in the household 6
SOCIAL GROUP MECHANISM Household Altruism Exchange Other remitters - + x Migrant potential heir + Kin or village members Relative deprivation Optionseeking Shared norms Other remitters + + x Migrant's income - Other remitters in one's social category + 7
Migrants remit.. if others... do. [Altruism] less in the household [Exchange] more in the household [RelaPve more among kin or villagers deprivapon] 8
SOCIAL GROUP MECHANISM Household Altruism Exchange Other remitters - + x Migrant potential heir + Kin or village members Relative deprivation Optionseeking Shared norms Other remitters + + x Migrant's income - Other remitters in one's social category + 9
Migrants remit.. if others... do. [Altruism] less in the household [Exchange] more in the household [RelaPve more among kin or villagers deprivapon] [OpPon] more among kin or villagers 10
SOCIAL GROUP MECHANISM Household Altruism Exchange Other remitters - + x Migrant potential heir + Kin or village members Relative deprivation Optionseeking Shared norms Other remitters + + x Migrant's income - Other remitters in one's social category + 11
Migrants remit.. if others... do. [Altruism] less in the household [Exchange] more in the household [RelaPve more among kin or villagers deprivapon] [OpPon] more among kin or villagers [Shared norm] more among villagers of the same social category 12
SOCIAL GROUP MECHANISM Household Altruism Exchange Other remitters - + x Migrant potential heir + Kin or village members Relative deprivation Optionseeking Shared norms Other remitters + + x Migrant's income - Other remitters in one's social category + 13
Thai Seang Myanmar Provincial Map of Thailand 0 150 300 Kilometers Population size Internal migrapon takes off in the 1980s unpl the 1997 crisis Data: Nang Rong censuses of 51 villages in 1994 and 2000 Andaman Sea Mae Hong Son Chang Rai Phayao Chiang Mai Nan Lamphun Lampang Phrae Ranong Uttaradit Sukhothai Tak Phitsanulok Loei Udon Thani Nong Khai Sakon Nakhon Kamphaeng Phet Phetchabun Khon Kaen Kalasin Phichit Maha Sarakham Roi Et Chaiyaphum Nakhon Sawan Yasothon Phet Buri Surat Thani Uthai Thani Chumphon Chainat Nakhon Ratchasima Buriram Sing Buri Thahanbok Lop Buri Surin Ang Thong Saraburi ") Supham Buri Phra Nakhon Si Ayutthaya Nang Rong Nakhon Nayok Kanchanaburi Pathum Thani Prachin Buri Nakhon Pathom Bangkok Ratchaburi Nonthaburi Samut Prakan Samut Samut Chon Buri Songkhram Sakhon Prachuap Khiri Khan Thailand Rayong Gulf of Thailand Chanthaburi Laos Trat 5,000,000 and greater 100,000 to 250,000 Area of detail Nakhom Phanom Provincial Boundary Ubon Ratchathani Sisaket Cambodia Map of Study Site Road 0 30 60 50,000 to 100,000 Less than 50,000 South China Sea Vietnam N~30,000 individuals Phuket Phangnga Nakhon Si Thammarat Krabi Phatthalung Trang Songkhla Pattani Satun Yala Narathiwat Kilometers South China Sea Nang Rong Buriram Malaysia 14 Created by Tsering Wangyal Shawa
Complete social network data on sibling relapons 15
1994 A B C 2000 A B C
Results Migrants remit more if others in the household remit, especially in wealthy households. 17
Results SOCIAL GROUP MECHANISM Household Altruism Exchange Other remitters - + x Migrant potential heir + Kin or village members Relative deprivation Optionseeking Shared norms Other remitters + + x Migrant's income - Other remitters in one's social category + 18
Results Migrants remit more if others in the household remit, especially in wealthy households. Migrants remit more if others among villagers of the same social category remit. 19
Results SOCIAL GROUP MECHANISM Household Altruism Exchange Other remitters - + x Migrant potential heir + Kin or village members Relative deprivation Optionseeking Shared norms Other remitters + + x Migrant's income - Other remitters in one's social category + 20
Take- away There are network effects in remiang behavior. The effects are especially strong in households that offer future bequests and among villagers who occupy similar social roles. The effects can be endogenous or correlated. 21