Remittances and the Dominican Republic Survey of Recipients in the Dominican Republic Survey of Senders in the United States Columbia University New York City November 23, 2004
I. The U.S. Sample National sample of Dominican adult immigrants in the United States. 801 national interviews conducted from October 18 to October 30 with a margin of error of 4 percentage points. 567 interviews of regular remittance senders. 2
States where interviews were conducted Interviews were conducted in the 5 states where 90% of the Dominican adult immigrant population resides in the United States New York 57% New Jersey 11% Florida 10% Massachusetts 9% Rhode Island 3% 0% 10% 20% 30% 40% 50% 60% 3
II. Demographics of Dominican Immigrants in the United States that send Remittances on a Regular Basis
Residency in the United States Less than 5 years 14% 5 to 10 years 17% More than 10 years 65% Don't know / No answer 4% 0% 10% 20% 30% 40% 50% 60% 70% 5
Annual Income Less than $20,000 38% $20,000 - $40,000 22% More than $40,000 7% Don't know / No answer 33% 0% 5% 10% 15% 20% 25% 30% 35% 40% 6
Education Less than primary school 17% Primary school 7% Some high school 21% High school graduate 24% Some college 13% Technical school 3% College graduate / Graduate school 12% 0% 5% 10% 15% 20% 25% 30% 7
Age 18-24 7% 25-35 17% 36-49 34% 50-64 26% 65 or older 12% 0% 10% 20% 30% 40% 8
Gender Male 42% Female 58% 0% 10% 20% 30% 40% 50% 60% 70% 9
Citizenship Status Citizen 35% Legal resident 57% Undocumented immigrant 3% No answer 5% 0% 10% 20% 30% 40% 50% 60% 10
III. Remittance Senders 71 percent of the estimated 1 million (U.S. Census 2003) Dominican adult immigrants in the United States send remittances on a regular basis. Our study indicates that approximately 710,000 Dominican immigrants living in the United States send about $1.6 billion to their families on a yearly basis. Each remittance averages approximately $150. Our study also indicates that Dominicans living in the U.S. send money home about 15 times per year. 11
Remittance Senders in the United States Have you ever sent money to your relatives in the Dominican Republic? 14% Yes 15% Yes, but not within the last year No 71% 12
How often do you send money to your relatives in the Dominican Republic? Average 15 times a year More than once a month 26% Once a month 42% 4 to 6 times a year 13% 2 to 3 times a year 7% Once a year 4% 0% 10% 20% 30% 40% 50% 13
How long have you been sending money to your relatives in the Dominican Republic? Less than a year 5% 1 to 3 years 12% 3 to 5 years 11% More than 5 years 69% 0% 10% 20% 30% 40% 50% 60% 70% 80% 14
How much money on average do you send with each remittance? Average $150 Less than $50 $51 - $100 $101 - $200 $201 - $300 $301 - $400 $401 - $500 More than $500 Don't know / No answer 3% 1% 2% 3% 7% 20% 18% 46% 0% 10% 20% 30% 40% 50% 15
How do you send the money to your relatives in the Dominican Republic? International Money Transfer Company 84% Mail / Courier 10% Credit union 3% Bank 2% Internet 0% 0% 20% 40% 60% 80% 100% 16
How many people do you send money to? One 46% Two 23% Three 16% Four 7% Five or more 7% 0% 10% 20% 30% 40% 50% 17
IV. Dominican Remittance Senders in the United States and the Banking System
Do you have a bank account in the United States? Dominican Remittance Senders 2% Yes 47% No 51% Don't know / No answer 19
Do you have a bank account in the United States? Income Yes answers only Less than $20K a year 43% $20K a year or more 71% 0% 20% 40% 60% 80% 20
Do you have a bank account in the United States? Citizenship Status Yes answers only Citizen 59% Legal resident 41% 0% 10% 20% 30% 40% 50% 60% 70% 21
Do you have a bank account in the Dominican Republic? 2% 27% Yes No Don't know / No answer 71% 22
V. The Dominican Sample National sample of adults in the Dominican Republic. 2999 national interviews conducted from October 18 to November 5 with a margin of error of 2 percentage points. 1133 interviews of regular remittance recipients. 23
Dominican Republic Regions 24
Dominican Republic Regions Remittance Recipients North 30% South 24% Santo Domingo 35% East 11% 0% 5% 10% 15% 20% 25% 30% 35% 40% 25
VI. Demographics of Dominicans that receive Remittances on a Regular Basis
Monthly Income Dominican Adults No monthly income Less than $100 $100 - $200 $200 - $300 $300 - $400 $400 - $600 More than $600 Don't know / No answer 2% 2% 4% 4% 8% 8% 8% 8% 11% 11% 23% 20% 25% 28% 19% 19% All Dominicans Remittance recipients 0% 5% 10% 15% 20% 25% 30% 27
Education Dominican Adults Less than primary school 16% 14% Primary school Some high school 9% 7% 14% 14% All Dominicans High school graduate 15% 17% Some college Technical school 5% 4% 26% 31% Remittance recipients College graduate / Graduate school 15% 13% 0% 5% 10% 15% 20% 25% 30% 35% 28
Age Dominican Adults 18-24 25-35 31% 33% 30% 32% All Dominicans 36-49 18% 18% 50-64 65 or older 7% 6% 13% 11% Remittance recipients 0% 10% 20% 30% 40% 29
Gender Dominican Adults Male 43% 49% All Dominicans Female 51% 57% Remittance recipients 0% 10% 20% 30% 40% 50% 60% 30
Where does your relative live? Remittance Recipients United States 56% Puerto Rico 20% Europe 21% Latin America / Other 3% 0% 10% 20% 30% 40% 50% 60% 31
Where does your relative live in Europe? Spain Italy France Switzerland Netherlands Germany England Portugal Other 4% 2% 1% 1% 2% 8% 11% 18% 53% 0% 10% 20% 30% 40% 50% 60% 32
Where does your relative live in the Americas? Caribbean 29% Central America 22% Venezuela 20% South America 19% Mexico 10% 0% 5% 10% 15% 20% 25% 30% 35% 33
VII. Remittance Recipients 38 percent of Dominican adults receive remittances on a regular basis. According to the Oficina Nacional de Estadisticas (ONE), there are approximately 5.1 million Dominican adults. Our study of remittance recipients in the Dominican Republic shows that 1.9 million Dominicans receive about $2.7 billion in remittances every year. An estimated $1.6 billion comes from the United States and the other $1.1 billion from Europe, Puerto Rico, and the rest of the world. The average remittance received is $141. The average Dominican receives a remittance 10 times a year. 34
Regular Remittance Recipients in the Dominican Republic Are you receiving money from a relative living abroad? 38% Yes 62% No 35
How often do you receive money from your relative living abroad? Average 10 times a year Twice a month or more 17% Once a month 45% 4 to 6 times a year 23% 2 to 3 times a year 10% Once a year Less than once a year 1% 4% 0% 10% 20% 30% 40% 50% 36
How long have you been receiving money from this relative? Less than one year 11% One to three years 31% Three to five years 26% More than five years 30% 0% 5% 10% 15% 20% 25% 30% 35% 37
How long have you been receiving money from this relative? Less than one year 9% 14% United States One to three years 29% 33% Three to five years More than five years 24% 29% 22% 36% Puerto Rico / Europe / Latin America / Other 0% 10% 20% 30% 40% 38
How much money on average do you receive with each remittance? Average $141 2,500 pesos or less 2,501-5,000 pesos 5,001-7,501 pesos 7,501-10,000 pesos 10,001-12,500 pesos 12,501-15,000 pesos 15,001-17,500 pesos 17,501-20,000 pesos 20,001-25,000 pesos 25,001 pesos or more 6% 4% 2% 1% 1% 9% 16% 15% 21% 24% 0% 5% 10% 15% 20% 25% 30% 39
How do you collect your remittance? International Money Transfer Company (in house) 72% Mail / Courier 14% International Money Transfer Company (in office) 12% Bank 2% 0% 10% 20% 30% 40% 50% 60% 70% 80% 40
Are you satisfied with the services of your current international money transfer company? 3% 3% Yes No 94% Don't know / No answer 41
How is the money used? Daily expenses 60% Education 17% Invest in a business Savings Invest in a property Luxuries / Other 5% 5% 4% 6% 0% 10% 20% 30% 40% 50% 60% 70% 42
Do you use the money from the remittance as collateral to get a bank loan? Respondents who invest in a business, a property or savings only* 14% 15% Yes No 71% Don't know / No answer 43
Is your remittance shared with another person? If so, how many people? Yes with one other person 12% Yes, with two other people 27% Yes, with three other people or more 29% Not shared 30% 0% 5% 10% 15% 20% 25% 30% 35% 44
How often do you communicate with your relative? Daily 23% Once a week 52% Once a month 20% A few times a year Almost never Don't know / No answer 1% 1% 3% 0% 10% 20% 30% 40% 50% 60% 45
Was there an agreement to send remittances before your family member left? 6% Yes 36% No, it came up afterwards 58% Don't know / No answer 46
VIII. Dominican Remittance Recipients and the Banking System
Is there a bank near your home? Remittance Recipients 27% Yes No 73% 48
Do you have a bank account? 40% Yes 34% All Dominicans No 58% 66% Remittance recipients 0% 10% 20% 30% 40% 50% 60% 70% 49
Do you have a savings account? Respondents who have a bank account only 7% 1% Yes No Don't know / No answer 92% 50
Why do you not use your bank account to receive remittances? Respondents who have a bank account only 21% 17% I don't think that my bank offers the service 5% The service is expensive I prefer my current service 57% Don't know / No answer 51
Do you know how to operate an automatic teller machine (ATM)? Remittance Recipients 17% 2% Yes No 81% Don't know / No answer 52