The Impact of Skill Mismatching Among Migrants on Remittance Behaviour

Type Journal Article
Title The Impact of Skill Mismatching Among Migrants on Remittance Behaviour
Publication (Day/Month/Year) 2009
This paper considers the issue of skill mismatching among immigrants and its impact on their remittance behaviour. Our main hypothesis is that skill mismatching - broadly defined here as the over-qualification of migrants in their destination country occupations - is prevalent among skilled migrants and exerts a downward pressure on the level of international remittances received by the sending economies. Accordingly, a high incidence of skill-to-job mismatching implies that the remittances expatriated would be significantly less compared to conditions of no mismatching. We find systematic variation in the incidence of skill mismatching by host country. We also find that where there is skill mismatch, remittance amounts are significantly lower for both men and women, and that remittance incidence is lower for men. However, when comparing two types of migrants in the same occupational category, where one group experience a mismatch and the other did not, we find that the more educated ones tended to remit greater amounts than their less educated counterparts. We use cross-sectional data from two linked surveys in the Philippines: the Survey on Overseas Filipinos (SOF) and the Family Income and Expenditure Survey (FIES) for the years 1997, 2000, and 2003.

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