Remitting Behaviour of Turkish Migrants: Evidence from Household Data in Germany

Abstract

This paper provides an empirical analysis of the remittances of Turkish migrants using novel data from 589 households in Berlin, which holds the largest Turkish community outside Turkey. The findings suggest that the remittances of Turkish migrants are determined mainly by a combination of self-interest and tempered altruism. Comparison of migrant groups who do and do not intend to return to Turkey shows that those intending to return remit mostly for self-interest and remit larger amounts, while those with no such intention remit mainly due to implicit loan agreement within the family. There is no evidence of pure altruism in any of the samples. In addition, remitters are more likely to increase the amount of remittances where they are to be spent on education and investment. The same relationship does not hold for basic needs.