Refugees in Germany Send Less Money Abroad Than Other Migrants
In recent years, the debate on money transfers from refugees to their home countries in Germany has been intense, leading to the introduction of a payment card for asylum seekers. A study based on SOEP-IAB-BAMF data examines how the percentage of people living in Germany who send money abroad has changed over time based on their migration background – with or without a refugee background – and the factors influencing the likelihood of money transfers. The analysis reveals that migrants without a refugee background send money more frequently, while refugees are less able to do so due to structural barriers. This challenges the prevailing political discourse. The likelihood of making money transfers abroad is particularly influenced by family situations and the intention to stay in Germany long term. The results should contribute to a reassessment, as these money transfers are an important tool for achieving sustainable development goals and stabilizing the economy in the countries of origin.
The Rise of Private Money Transfers
Over the past few decades, the volume of private money transfers abroad has steadily increased worldwide, reaching historic highs. According to the World Bank, based on calculations from respective central banks, these money flows have become a significant source of income for many developing countries. They help millions of families meet basic needs and make a significant contribution to local economic development. Germany has also seen a rise in the amounts sent abroad since the 2000s, with transfer amounts exceeding $24 billion in 2023, making Germany one of the leading remittance countries in Europe.
Complexity of Money Transfers and Policy Reactions
The increase in money transfers and the resulting policy responses underscore the complexity of the issue. They highlight how economic aspects of migration are intertwined with social policy challenges and public discourse. While these transfers are crucial for recipient countries, host countries face the challenge of addressing concerns about public funds flowing abroad while ensuring support and integration for refugees. The debate on money transfers abroad fails to consider the positive effects these funds have on recipient countries, raising the need for a more nuanced understanding.
Analyzing Money Transfer Patterns
Understanding the motivations behind money transfers is crucial, as they can provide insights into the economic circumstances and realities of migrants in Germany. Altruistic motives, strategic investment intentions, and social and cultural ties are key drivers of these transfers. Various factors such as gender, household size, marital status, and return intentions influence the likelihood of making money transfers. While migrants without a refugee background have shown an upward trend in sending money abroad, refugees send less money due to economic and employment challenges.
Implications for Policy and Future Research
The study sheds light on the nuances of money transfers among migrants in Germany, highlighting the need for a deeper analysis to inform policy decisions. Recognizing the value of these transfers as a crucial form of economic support is essential. A reassessment of the role of money transfers could align policy measures to promote these transfers and strengthen their function as a direct development tool. Supporting the economic integration of refugees would enhance their financial independence and ability to support their families abroad, ultimately benefiting both the refugees and their home countries.
In conclusion, a comprehensive understanding of the complexities surrounding money transfers among migrants in Germany is essential for developing effective policies and fostering sustainable development outcomes. By acknowledging the significance of these transfers and addressing the challenges faced by different migrant groups, policymakers can harness the potential of remittances to drive positive social and economic impacts locally and globally.
