Remittance behaviours of foreigners in Italy

This paper intends to gain a better understanding of why migrants remit, what characteristics they have, which of these characteristics influence (and in what sense) their remittance behaviours, and how their behaviours evolve with the passage of time since migration. In particular, we aim to test the so-called “remittance decay hypothesis”, according to which the eventual integration of migrants in the country of destination and the gradual loosening of ties with the country of origin would lead to a progressive reduction in their need and desire to remit. In practice, the evolution of the migration project towards stabilisation in the host country, rather than return, would make migrants more prone to invest socially and economically in the country of destination, while reducing their emotional and economic commitment to the family left behind. The analysis is based on data from the 2009 “Italian Statistics on Income and Living Conditions of Households with Foreigners”, covering over 6,000 households with at least one foreign member. This survey provides detailed information on foreigners’ characteristics, including reason to move to Italy and return plans, and allows us also to consider their family composition both in Italy and in the country of origin.