Remittances and Migrants’ Education: Do Higher-Educated Current Migrants Send More Flow of Remittance? Evidence from Egypt

Gad, Amany Yashoa

doi:10.21608/cjmss.2023.238691.1018

Remittances and Migrants’ Education: Do Higher-Educated Current Migrants Send More Flow of Remittance? Evidence from Egypt

Document Type : Original Article

Author

Amany Yashoa Gad

Associate Professor of Statistics, college of administration business, economic and information systems, Misr University for Science and Technology, Egypt

10.21608/cjmss.2023.238691.1018

Abstract

The relationship between the issue of migration and development has been discussed since the 1980s; The highly skilled migration affects the sending country, in particular, it has been suggested that remittances, as the main positive effect, while the loss of human capital as a main negative effect. Theoretically, there are several reasons to believe that there will be differences between the remitting patterns of higher-educated emigrants and less-educated emigrants. On one hand, several factors would tend to lead highly skilled migrants to be more likely to remit a larger amount of remittances. This study aims to address the experimental research question as to whether the remittance inflows to Egypt increase with migrants' education level that means do higher-educated current migrants send more remittance flows comparing with less-educated migrants? using The Egypt Household International Migration Survey (Egypt-HIMS 2013). This study applies two multiple regression models. The main finding of this study is that there is a significant positive effect of education on remittances that means more educated migrants remit more. This result due to that higher-educated current migrants are likely to work better jobs and earn more comparing with less-educated current migrants. Also, higher-educated (skilled) migrants are less likely to be illegal migrants, and more likely to have “bank accounts, lowering the financial transactions costs of remitting”. Besides, the vice majority of Egyptian current migrants go to Arab countries and unaccompanied by their families, so they have to send remittances to share their earnings abroad with their household members.

Keywords