22

**Table 5.  IV estimates of effects of high-skilled migration (13 years or more of schooling) on receipt of international remittances**

|||Dependent variable =<br>|Per capita internationa<br>|l remittances received b<br>|y labor-sending country<br>|<br>|
|---|---|---|---|---|---|---|
|Variable|(1)|(2)|(3)|(4)|(5)|(6)|
|Instrumented endogenous variables|||||||
|Percent of high-skilled migrants (13 years or more schooling)|-1.119|-1.286|-1.968|-1.857|-1.607|-1.566|
|in total migrants from labor-sending country in OECD|(-1.76)|(-1.82)|(-3.01)**|(-2.89)**|(-3.18)**|(-3.14)**|
|Stock of total migrants from labor-sending country in OECD|0.128|0.101|0.214|0.223|0.069|0.067|
||(0.96)|(0.73)|(1.03)|(1.13)|(0.51)|(0.49)|
|Poverty headcount in labor-sending country ($1.08/person/day)|-0.564|-|-0.607|-|-0.671|-|
||(-2.68)**||(-2.44)*||(-1.36)||
|Poverty gap in labor-sending country|-|-0.401|-|-0.513|-|-0.466|
|||(-2.09)*||(-2.27)*||(-1.33)|
|Exogenous regressors|||||||
|Percent of population under 14 years in labor-sending country|3.073|2.761|3.122|2.754|2.893|2.607|
||(2.10)*|(2.08)*|(2.06)*|(1.85)|(2.02)*|(1.90)|
|Per capita GDP in labor-sending country (constant 2000|7.078|7.126|-1.661|-2.471|7.012|7.092|
|dollars)|(2.35)*|(2.26)*|(-0.58)|(-0.82)|(2.30)*|(2.22)*|
|Per capita GDP squared|-0.500|-0.489|0.110|0.180|-0.506|-0.492|
||(-2.32)*|(-2.17)*|(0.53)|(0.84)|(-2.32)*|(-2.13)*|
|Gini coefficient in labor-sending country|-3.768|-4.044|-3.230|-3.277|-3.753|-4.043|
||(-2.34)*|(-2.57)*|(-1.27)|(-1.28)|(-2.16)*|(-2.48)*|
|Real interest rate (percent) in labor-sending country|0.416|0.421|0.654|0.643|0.458|0.446|
||(2.19)*|(2.22)*|(3.38)**|(3.32)**|(2.37)*|(2.36)*|
|Cost to send $200 remittances to country|-1.501|-1.398|-1.363|-1.056|-1.654|-1.444|
||(-1.84)|(-1.63)|(-2.37)*|(-1.70)|(-1.93)|(-1.46)|
|Exchange rate spread in labor-sending country|-0.090|-0.134|-0.326|-0.388|-0.118|-0.162|
||(-0.50)|(-0.66)|(-1.83)|(-1.93)|(-0.62)|(-0.77)|
|War in labor-sending country (dummy)|0.714|0.771|0.166|0.341|0.675|0.768|
||(1.62)|(1.68)|(0.41)|(0.75)|(1.71)|(1.93)|
|Constant|-29.068|-29.195|3.308|4.711|-24.671|-26.677|
||(-2.58)*|(-2.47)*|(0.29)|(0.39)|(-2.00)*|(-2.22)*|
|N|62|62|53|53|62|62|
|Centered R<sup>2</sup>|0.541|0.529|0.589|0.580|0.547|0.531|
|F-statistic|5.93|4.77|8.66|7.79|6.50|6.14|
|Instrument set|A|A|B|B|C|C|
|Anderson LR-statistic (identification/IV relevance test)|33.013|32.383|50.923|49.740|6.177|9.656|
|p-value for Anderson LR-statistic|0.000|0.000|0.000|0.000|0.013|0.001|
|Hansen J-statistic (overidentification test)|0.178|0.270|3.454|2.655|n.a.|n.a.|
|p-value for Hansen J-statistic|0.673|0.603|0.178|0.265|||

Notes: All variables expressed in logs; all equations include 5 regional dummy variables which are not reported here. Robust t-statistics shown in parentheses. Number of observations reduced in table because of missing values for certain variables. See Appendix Table 1 for countries and survey dates. * Significant at the 0.05 level ** Significant at the 0.01 level n.a. not applicable as equation is exactly identified Instrument sets: A: Distance, language B: Total population, population density, percent urban population

- C:  Percent urban population