The Measurement of Remittances Using Surveys in Industrialized Countries

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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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 (–)

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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)

14. 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)

15. 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