We estimate a multinomial logit model to explain the choice of transfer channel (formal
services vs. informal operators or personal transfers) by 1139 pairs of
migrants and recipients of remittances in Moldova in 2006. Explanatory
variables include socioeconomic characteristics of the migrant and other
household members, the pattern of migration (destination country, legal
status, duration) and financial information (average amount and
frequency of payments). Key reasons not to use a formal transfer channel
include an emphasis on low transfer cost (rather than speed,
convenience, or security), a migrant’s irregular legal status in the
host country, and short migration spells.
Appears in: MGSoG Working Paper Series (discontinued)
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