STUDY 

Remittances by Recent Immigrants to Canada

Statistics Canada released recently a study on “Remittances by recent immigrants.” The study published in the Analytical Studies Branch Research Paper Series, used data from the LSIC to document the incidence of remitting, amounts and the characteristics of the people who sent money home. A shorter version appears in Perspectives on Labour and Income.

Roughly 4 in 10 immigrants who arrived in Canada during 2000/2001 sent money to family or friends abroad at least once during their first four years in the country.

Over the entire period, about 41% of immigrants sent money home at least once. Within 6 to 24 months of landing, 23% of immigrants had sent remittances to their home country; within two to four years after landing, about 29% had done so.

Among those who sent money home, the average amount was $2,500 in the first period, and $2,900 in the second period.

The incidence of sending money varied considerably from country to country. The proportion was highest among immigrants from the Philippines and Haiti, and lowest among those from France, the United Kingdom and South Korea.

REMITTANCE BEHAVIOUR VARIES BY REGION OF BIRTH

The practice of sending remittances varied widely by regions of the globe. Over half of immigrants from Southeast Asia and the Caribbean and Guyana sent remittances home two to four years after landing, compared with about 40% of those from sub-Saharan Africa and Eastern Europe.

About one-quarter of the respondents from South Asia and Central and South America sent remittances during this period. About one-fifth of those from East Asia or West Asia, the Middle East and North Africa did so.

Average amounts sent also differed. Two to four years after landing, immigrants from East Asia sent $3,900, whereas immigrants from the Caribbean and Guyana sent $1,600.

The incidence of remitting was highest among those from countries with lower GDP per capita. Around 36% of immigrants from countries with per capita GDP of less than $4,000 sent money home, compared with only 11% from countries with per capita GDP of $15,000 or more.

DEMOGRAPHIC CHARACTERISTICS

Immigrants with three or more children at home were far less likely to send money abroad than those with no children.

There were also other demographic factors. For example, women sent about 12% less than men. Also, immigrants aged from 25 to 44 were far more likely to send money abroad, and far higher amounts, than those in younger or older age groups.

The study "Remittance behaviours among recent immigrants in Canada" is now available as part of the Analytical Studies Branch Research Paper Series (11F0019MIE2008312, free) from the Analytical Studies module of our website. The abridged version "Remittances by recent immigrants" is now available in the July 2008 issue of Perspectives on Labour and Income, from the Publications module of our website.

You can find a summary and link to the full content of the study at: http://www.statcan.ca/english/freepub/75-001-XIE/75-001-XIE2008107.htm  

[Source: Statistics Canada]