Sharing Norm Pressures and Community Remittances: Evidence from a Natural Disaster in the Pacific Islands

Richard P.C Brown (), Gareth Leeves () and Prabha Prayaga ()
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Richard P.C Brown: School of Economics, The University of Queensland
Prabha Prayaga: School of Economics, The University of Queensland

No 471, Discussion Papers Series from University of Queensland, School of Economics

Abstract: Migrants are often subject to social pressures to remit beyond their own households, to share the benefits of migration with the wider community in their home country; these are ‘community remittances’. We hypothesize that community sharing norm pressures are stronger in locations with more extensive home-community networks. We also postulate that the responsiveness of remittances to sharing pressures is subject to diminishing returns, attributable to a donor fatigue effect. Using customized survey data from three Polynesian migrant groups in metropolitan and regional Australia, we estimate double-hurdle regression models of community remittances. To identify the effects of sharing norm pressures we exploit an exogenous (cyclone) shock to home country incomes affecting one sub-group. We find strong evidence in support of the postulated responsiveness of community remittances to location-related differences in sharing norm pressures, and the presence of a donor fatigue effect. The policy implications are discussed.

Date: 2012-10-01
New Economics Papers: this item is included in nep-mig and nep-ure
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Citations: View citations in EconPapers (2)

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https://economics.uq.edu.au/files/45743/471.pdf (application/pdf)

Related works:
Journal Article: Sharing Norm Pressures and Community Remittances: Evidence from a Natural Disaster in the Pacific Islands (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:qld:uq2004:471

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