UNECE/EUROSTAT work session on migration statistics, november 2006 Session 3.2.: Challenges to measure remittances and emigration Discussant Werner Haug Werner Haug Swiss Federal Statistical Office

UNECE/EUROSTAT work session on migration statistics, november 2006 Prelude: Different approaches for the measurement of emigrant stocks and flows  Measuring the stock of emigrants through a register of emigrants and passport border control data (entry/exit data) (ISRAEL)  Measuring unofficial emigration based on LFS data on nonrespondents and emigrants in responding households (LITHUANIA)  Measuring emigrants abroad with a special module in the Population Census (persons who left/returned in the last five years with country of destination and origin (TUNESIA)

UNECE/EUROSTAT work session on migration statistics, november 2006 The discussion concentrates on the issue of remittances  Remittances in the balance of payments : implications of the new definition  Migration and remittances in household surveys: designs and concepts  Complementarity or contradiction between macro and micro, economic, social and demographic approaches  The need for an integrated framework and methodological guidelines

UNECE/EUROSTAT work session on migration statistics, november 2006 The balance of payment approach  The new concepts and definitions proposed in 2006 for the measurement of crossborder transactions in the BOP by the UN Technical Subgroup on the Movement of Natural Persons are a big step forward.  But the implications of the new definitions and the link with household surveys are not yet fully understood by statisticians and (even less) by policy makers.

UNECE/EUROSTAT work session on migration statistics, november 2006 The case of Switzerland: an illustration Remittances from Switzerland, 2004 according to BOP concepts Amount (Mrd. SFr.) Percentag e Total remittances Social benefits (transfers to former residents and/or workers abroad ) Personal remittances Net compensation of employees (salaries of non- resident workers/short term migrants) Personal transfers (revenue of long term migrants) 3.921

UNECE/EUROSTAT work session on migration statistics, november 2006 The case of Switzerland: an illustration  Switzerland is the 4th most important sending country according to World Bank But:  41 % of the remittances are social benefits transferred from the state or the social insurance sector to former residents and/or workers abroad (mostly retired but also unemployed).  38% are net compensations for salaries of persons that are not long term migrants according to the UN definition (temporary migrants, crossborder workers).  Only 21% are personal transfers from long term migrants to private households residing abroad - and this amount is underestimated according to recent household survey data.

UNECE/EUROSTAT work session on migration statistics, november 2006 Implications and conclusions  It is extremely important to understand in detail the composition of total remittance flows according to the BOP framework.  BOP data include transfers from and to other sectors than private households (state, social insurance, the non-profit sector is also affiliated).  Transfers can go to private households abroad although no household member is working or residing in the sending country anymore. The migration which is at the origin of a transfer can lie far in the past.  BOP data include transfers that are related to other forms of labour mobility than migration: crossborder and temporary workers (< 3 months).

UNECE/EUROSTAT work session on migration statistics, november 2006 Implications and conclusions  The balance of payment framework is larger than the usual « migration statistics » approach.  Measurement problems are huge (international transaction reporting systems are rudimentary) and estimation methods are extremely diverse, sometimes inexistant.  It is essential to complement BOP information with data from household surveys collected on both sides of the migration chain to: –estimate the volumes –and even more understand the economic, social and developmental impact of migration and remittances.

UNECE/EUROSTAT work session on migration statistics, november 2006 Remittances and migration in household surveys Different household surveys and/or modules are introduced/developed/tested to measure remittances and migration:  IOM migration and remittances studies  ILO modules for Labour Force Surveys  IADB draft module on remittances  World Bank Living Standard Measurement Survey  …

UNECE/EUROSTAT work session on migration statistics, november 2006 Why so many instruments?  Which are the goals of the surveys?  Which theoretical frameworks do they use?  Should we use existing surveys or do we need new ones?  Could the surveys be better coordinated and standardised?

UNECE/EUROSTAT work session on migration statistics, november 2006 What to measure? Different measuremetn goals are identified:  Volume of remittances on the macro level (ILO, IADB)  Impact of remittances on poverty, household income and living conditions (World Bank)  Impact of remittances on the labor market, the local economy and the community (ILO, IADB)  Link between type of migration, migration experience and remittances (IOM)

UNECE/EUROSTAT work session on migration statistics, november 2006 The missing conceptual framework  However: the goals are not always clearly spelled out and operationalisation is often superficial  The conceptual framework is generally missing (compared with BOP, household income or labor market statistics) For instance:  The IOM survey in Moldova is very elaborate on migration but has no real « remittances questions »  The IADB questions have no migration context and LFS modules proposed by ILO make only sense if they are part of a lager household income and migration framework in the LFS

UNECE/EUROSTAT work session on migration statistics, november 2006 Which framework ?  It should be compatible with the definitions of the BOP framework  Coherence with the BOP framework requests e.g. that income from working abroad by resident household members should also be identified and treated as remittances, as well as social benefits from abroad  The framework should be a houshold income and living conditions framework, adapted to the migration context  This means that remittance data should als fit into concepts and data from other surveys such as EU-SILC and the Household Budget Surveys

UNECE/EUROSTAT work session on migration statistics, november 2006 Specific methodological questions 2/1  Long term migrants remain economically and socially part of the household although they are not residents anymore. The « transnational household » is a reality, but demographic statistics do ignore it  Net worth of returnees during the last 12 months should also be included in the estimation of remittances (I did not see respective questions in the questionnaires)

UNECE/EUROSTAT work session on migration statistics, november 2006 Specific methodological questions 2/2  Remittances from internal migrants should also be identified as part of the houshold income  Certain classifications need standardisation: –Modes of transactions of remittances –End use of remittances etc.  It remains unclear how collective remittances and transfers through the non-profit sector should be dealt with in household surveys

UNECE/EUROSTAT work session on migration statistics, november 2006 More work and increased cooperation is necessary  Closer cooperation between BOP, migration and development specialist is essential to improve survey instruments  Increased cooperation between international organisations is necessary. Each organisation has its specific focus but on the country level, NSO’s have to bring the things together  In which surveys should we place questions regarding remittances and migration?  LFS are a possible platform, but only under certain conditions and questions should also be asked in LFS of net remittance sending countries. Surveys on income, expenditure and living conditions are other important options.

UNECE/EUROSTAT work session on migration statistics, november 2006 A new (interagency and intercountry) task force?  Do we need a new task force on the European level? Which should:  coordinate with BOP  look at the questions regarding remittances and migration in different household surveys  propose a coherent conceptual framework and methodological guidelines

UNECE/EUROSTAT work session on migration statistics, november 2006 Thank you!