In 2023, remittances, defined as money sent from work country back to the home country by migrants, was around 656 billion US dollars and in 60 countries, accounting for 3+% of their GDP (World Bank 2024). Remittances are thus a vital part for supporting families in developing countries and reducing global income inequality (SDG10).

As remittances are a drain on household finances, we expect that these will limit a person’s ability to send money, while cultural values (measured by ethnic identity, co-ethnic friendship and social networks, religiosity, citizenship, etc) to mould their preferences. Studies have examined the role of these factors but have focussed either on the first or second generation. We examine whether cultural values play a role in sustaining remittance behaviour across generations, after accounting for financial constraints.

As (ONS) Census ethnic group question is designed to identify migrant background, we identify anyone reporting their ethnic group as not White British as having a migrant background. Using data from Understanding Society we find, those with a migrant background are more likely to remit (23.4% vs 7.7%). Analysing those with a migrant background and using multivariate logistic regression, we find that compared to first generation, second+ are more likely to remit, reflecting their strong ties to the home country. Compared to Indians, most ethnic groups are more likely to remit (exceptions are White Other and Chinese). As expected, factors associated with economic position are positively associated with remitting – educational qualification, home ownership, household income. Compared to the first generation, second+ generation is more likely to remit if they exhibit stronger ethnic attachment as measured by stronger ethnic identity, stronger identification, belonging and pride with (home) country, eating food of the (home) country more often, stronger identification with parents’ ethnic group, and having more friends of the same ethnic group.

Co-authors

Professor Alita Nandi, University of Essex