Changes in Migration Patterns and Remittances: Do Female and Skilled Migrants remit more?

Migrants’ remittances to developing countries have significantly increased and are the second largest source of finance for developing countries after foreign direct investment. Also, the composition of international migration flows has been characterized by a growing feminization and skill intensity. In reviewing the literature on remittances, we argue that these two recent phenomena cannot be ignored if one aims to explain the role of remittances as a lifeline for developing countries. Using an original dataset on bilateral remittances and estimating a gravity model in which the gender and skill dimensions of the migrants are accounted for, we show that on average, annual remittances received by origin countries increase with the share of women and college graduates in the bilateral corridor. This effect is mainly driven by the presence of high-skilled female migrants.