The Measurement of Remittances Using Surveys in Industrialized Countries Mathias Lerch, Philippe Wanner and Werner Haug Laboratoire de démographie, University of Geneva LaboDémo

Outline  Challenges faced when surveying remittances by means of surveys  Information that surveys can provide  Main issues in surveying remittances as illustrated by specific surveys  Major problems of standardized household surveys  Conclusion and recommendations LaboDémo

Major Challenges Faced When Surveying Remittances  A rare population phenomenon  A « hidden » population  Diversified practices (money, goods, formal and informal channels)  A sensitive topic  Seasonal fluctuation LaboDémo

What Information Can Remittances Surveys Provide?  Estimates of macro flows (personal and capital transfers)  Accurate and updated estimation of parameters for the calibration of econometric models  Qualitative information on Remittance behavior Transfer channels used Relationship between remittances, integration, and development LaboDémo

Overview of Issues in Surveying Remittances with Specific Surveys  Define the reference population  Sampling method  Survey method  Definition of remittances and selection of the respondents  Harmonization of methodological choices LaboDémo

Issue 1: Sampling Frame I  New definition of « personal transfers » is based on the concept of the resident rather than the migrant  Identify population of foreign origin:  Foreign-born non-nationals  Foreign-born naturalized  Native-born (second generation) non-nationals  Native-born naturalized  Undocumented migrants LaboDémo

Issue 1: Sampling Frame II  Census data Exhaustive population of foreign origin (+) Low periodicity (–) Coverage bias (–)  Administrative records Exhaustive documented migrant population (+) High periodicity (+) Strong coverage bias (–) LaboDémo

Issue 1: Sampling Frame II  Telephone number lists Ethnic encoding methodology  Intercept points based on knowledge of international migration flows Selection of mobile population (–)  Peer recruitment Undocumented migrants LaboDémo

Issue 2: Sampling Method I  Stratified random sampling Geographic stratification Socio-economic stratification  Convenience sampling Of intercept points Chain-referral sampling  Combination of methods LaboDémo

Issue 3: Survey Method I  Face-to-face interviews to establish a relation of confidence  By phone – response bias Reputation of the survey organizer among the migrant community  Involve interviewers of foreign origin and suggest an interview in mother tongue  Circulate information about survey among diaspora LaboDémo

Issue 4: Definition of remittances and selection of respondents  New definition of « personal transfers » necessitates surveying of household transfers Household head All remitting members in the household  Focus on money and in-kind transfers  Gather qualitative information on capital transfers and on contribution to institutional remittances LaboDémo

Issue 5: Elibility to the survey  Households containing at least one individual of foreign origin Large respondent sample necessary  Households with individual of foreign origin who remits Accurate identification of the reference population Availability of socio-economic and migration characteristics in the sample base LaboDémo

Use of Standardized Household Surveys: Major Problems  Limited respondent sample of foreign origin  Coverage bias  Relation of confidence  Absence of information on the destination of remittances  Absence of specific migration modules Basic characteristics of immigrant population Determinants of remittances (length of stay) LaboDémo

Conclusion and recommendations  Estimation of macro flow by means of surveys depends heavily on the statistical infrastructure available to identify the reference population Update exhaustive population figures  Produce sectoral estimates with different levels of confidence based on multiple survey methods (for documented migrants, undocumented migrants) LaboDémo

Conclusion and recommendations  For econometric models: Regularly update calibration by surveying a representative selection of immigrant groups Define reference population of surveys in accordance with population figures used in the model  Until now, limited use of standardized household surveys LaboDémo