Givers and Receivers: Inter Vivos Transfers in the Case of Migrants to Australia

______________________________________________________________________________ This study analyses the characteristics of both recipients and givers of private transfers from a sample of Australian migrants. It utilises a unique longitudinal household survey conducted on immigrants entering Australia with permanent residency. Sample selection bias that arises from the limited observations that do remit and receive transfers is accounted for through the use of a two-step random effects model. The results suggest that many characteristics of givers are shared by recipients as well: young, well-educated migrants with their parents living away from them are the most likely to be engaged in both receiving and sending private transfers. On the other hand, improvements in the economic status of a migrant in the host country tend to reduce receipts but increase remittances. The identification of factors that encourage receipts into a migrant-hosting country suggest that the net benefits of remittances may be overrated due to the ignorance of the initial private flows that were channelled to the migrant. Additionally, highly educated migrants are more likely to receive and, given that they have received, receive larger amounts of private transfers: this suggests that private transfers from parent to child, rather than being compensatory, will further reinforce the wealth gap that exists between children with low and high amounts of human capital. ________________________________________________________________________________ JEL CLASSIFICATION: C34, D13, D64, F22