Remittance Behavior among Salvadoran and Filipino Immigrants in Los Angeles

Abstract

This study examines the practice of sending money to family members in their home countries (remittance behavior) among Filipinos and Salvadorans living and working in the United States. These subpopulations are among the largest and fastest-growing groups of Asian and Latin American immigrants to the US. Data were obtained from the 1991 Los Angeles Community Survey of 238 Filipinos and 383 Salvadorans concentrated in specific tracts. Among this population 445 families sent remittances in the year preceding the survey. It is hypothesized that the decision to remit and the amount sent are influenced by individual and income characteristics the motivation to migrate personal investments in the US and family obligations in the US and the country of origin. Findings from logistic models indicate that there were no differences between Filipinos and Salvadorans in the decision to remit. There were significant differences in the amount of money sent. After controlling for individual characteristics findings indicate that Salvadorans sent significantly more money in remittances than Filipinos. Findings confirm that earnings effected remittance behavior. Motivations affected the amount of money sent. Greater investments in the US were related to reduced remittances. Family obligations affected remittance behavior. Households with younger or older respondents were more likely to send remittances. Amounts remitted followed an inverted U-shaped pattern that peaked at 38.8 years. Years of education in the home country and in the US and English language skills were unrelated to remittances. Hours worked on the previous job among unemployed immigrants affected the decision to remit and the amount remitted. Among those currently employed the number of hours of work was unrelated to remittances. Age family income having studied English in the US and living alone were stronger explanatory variables for Filipinos remittance behavior. Different factors explained the decision to remit and the amount remitted.