Knowledge Note

Migrant remittances are one of the largest international financial flows to developing countries, exceeding US $400 billion in 2012. One common use of these funds is to fund the schooling of the migrant's children and other relatives in the home country. However, migrants may differ from remittance recipients in their preferences for how money sent should be used, with physical separation and limited information making it difficult for migrants to ensure money is used the way they intend. In such a context, financial instruments which provide migrants with greater ability to monitor and control how funds are spent could have positive take-up by some migrants, and may lead to an increase in how money is remitted. We test this idea in two ways with Filipino migrants in Rome: 1) through a lab-in-the-field experiment which tests explicitly whether migrants will remit more when given the ability to direct this money for educational purposes; and 2) through piloting a new product called EduPay that allows migrants to directly pay for school fees in the Philippines.

About the Presenters

Giuseppe De Arcangelis

Majlinda Joxhe

David McKenzie

Erwin Tiongson

Dean Yang