The Determinants of Worker’s Remittances in Pakistan

Remittances are basically a self-enforcing contractual arrangement betwc the individual migrant and the family. This idea of working abroad looks like tha may be a Pareto-superior strategy for the household when a member migra elsewhere either as a means of risk sharing or as an investment in excess to hig] earning streams. Remittances may then be seen as a device for redistributing gai with relative shares determined in an implicit arrangement struck between 1 migrant and the remaining family. The migrant adheres to the contractl arrangements as long as it is in his interest to do so. This interest may be eitl altruistic or more self-seeking, such as concern for inheritance or the right to retu home ulitmately in dignity.

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