The determinants of remittances: An investigation from legal perspectives

Abstract

This research aims to evaluate differences between micro-level determinants of remittance from immigrant workers and migrants in Vietnam. We employ the cross-sectional regression of 1680 observations collected by a survey across the country. We found that female workers had a lower frequency of supporting their household of origin through remittances than male workers while female migrants seemed to send more money to their home countries than male migrants. Interestingly, we document that overseas workers sent more money to those they left behind while migrants were found to send less remittance from the North to the South. In addition, other demographic determinants, including income, age, and marital status play a very important role in attracting remittance flows into Vietnam. Lastly, language proficiency might have a positive impact on remittance amount for both migrants and immigrant workers. These findings suggest that the government should improve and set regulations on foreign languages and skill training for overseas workers before they go abroad.