Often the whole family takes a loan to finance migration, and first remittances are often used for repaying these loans.
First, remittances sent back from migrants likely change household income and allow families to spend resources on different categories of expenditure, such as education and child health care.
First, remittances are likely to decrease V a r(c2) if the expected consumption is lower in the origin country than in the host country (E(c o |D w ≤D R )<E(c h |D w >D R )).
First, remittances could increase non-migrants reservation wages, making it more difficult to accept any offer in the labor market as well as discouraging them to keep searching for a job when the search period is longer than expected.
Second, remittances sent by these people to their relatives back home reduce the latter's dependence on the state and thus decrease their incentives to get involved with politics.
Second, remittances are likely to decrease V a r(c2) if, at the margin where the migrant is indifferent between staying and returning (i.e. for D w =D R ), the variance of wages in the origin country is lower than the variance of wages in the host country.
Second, remittances are directed into the purchase of consumer goods.
First, remittances are used to pay debts and the fares of subsequent migrants, usually from the same household.
Fifth, remittances are used for various forms of investment, sometimes in the agricultural sector but more frequently in the service sector, and especially into stores and transport businesses.
Second, remittance information should be made more easily and widely available to consumers.
