Migration and Remittances: Do Skilled Labor Remit More?

Abstract

Remittances has a significant role in the growth of an economy and the policy choice of exporting more skilled labor over less-skilled labor or vice versa could prove to be a decisive factor behind the growth. In spite of past studies there is still a lack of conclusive statements that could sway opinion to one side. This study attempts to provide an empirical analysis by accumulating data from a range of 160 countries for the year 2010, measuring an aggregate effect of skill level on remittance. The paper takes data from databank of World Development Indicators and the dataset published by DIOC in 2010/11. The results suggest that less-skilled labor indeed remit more than skilled labor. The study has contributed in the formation of opinion regarding skill level and remittances by conducting empirical analysis on a broader data.