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Weathering the storm: reverse remittance flows es insurance for migrants in South Africa
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Resumo(s)
The role of migrant remittances in facilitating cross-border risk-sharing is well established in the
economics migration literature but tends to focus primarily on flows from the migrant destination
country to the origin. Whether such risk-sharing is at work when the migrant faces shocks in the
destination country is still a relatively unexplored topic. Using a difference-in-difference
estimator with household survey data from migrants in South Africa, I test for the presence of
reverse remittance flows in response to a major flooding shock that took place in April 2022. I
find an increase in the probability of receiving remittances amongst migrants living in flood
affected areas, indicating an insurance effect. This is particularly prevalent amongst migrants
who had also sent remittances home, suggesting this insurance builds on reciprocity.
Descrição
Palavras-chave
Development economics International migration Financial inclusion Remittances Self-insurance