Transcript TSG/2/9

BEA’s Measures of Workers’ Remittances and
Transfers through Charitable Organizations
Michael Mann
Chief, Current Account Services Branch
Balance of Payments Division
Bureau of Economic Analysis (BEA)
BEA’s Measures of Workers’ Remittances and Transfers
through Charitable Organizations
• Workers’ Remittances – a numerical example of
BEA’s estimation methodology and source data
• Transfers through charitable organizations mostly based on BEA’s BE-40 Survey
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Workers’ Remittances
• BEA estimates workers’ remittances by multiplying
three factors:
– Stock of foreign-born population (S)
– Mean family income (M)
– Propensity to remit reflecting the average proportion of
income remitted (P)
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Factors Arranged by the Following Variables:
• Family Type
– Foreign born head of household (FB HH)
– Native born head of household, foreign born spouse (NB
HH, FB S)
– foreign born individuals (IND)
• Length of Residency in the United States
– 5 year intervals
– 1-5, 6-10, 11-15, 16-20, 21-25, 25-30, 30+ years
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Step 1.
Determine the stock of the foreign-born population in
the United States
Stock of the Foreign-Born Population Resident in the U.S. (S)
Length of residency in the United States (years)
1-5
67
6-10
32
11-15
20
Family
Type
FB HH
NB HH,
FB S
82
46
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IND
56
29
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Total Stock of Foreign-Born Population
16-20
15
21-25
29
26-30
10
31+
19
24
2
5
4
16
1
21
5
500
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Step 2.
Determine the mean family income of the foreign-born
population in the United States
Mean family income (M)
Family Type
Length of residency in the United States (years)
1-5
6-10
11-15
16-20
21-25
26-30
31+
FB HH
NB HH,
FB S
$9,250
$14,250 $19,250 $29,250 $39,250 $44,250 $49,250
IND
$10,000 $15,000 $20,000 $30,000 $40,000 $45,000 $50,000
$10,750 $15,750 $20,750 $30,750 $40,750 $45,750 $50,750
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Step 3.
Determine the propensity to remit for the foreign-born
population in the United States
Family
Type
Average proportion of income remitted (P)
Length of residency in the United States (years)
1-5
6-10
11-15 16-20 21-25 26-30 31+
FB HH 5.00% 2.50% 1.75% 1.00% 0.75% 0.75% 0.50%
NB HH,
FB S
2.50% 2.00% 1.50% 1.00% 0.75% 0.75% 0.50%
IND
7.00% 3.50% 2.00% 1.25% 0.75% 0.75% 0.50%
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Step 4.
Estimate remittances per capita by multiplying average
propensity to remit by mean family income
Remittances per capita (M*P)
Family
Type
Length of residency in the United States (years)
FB HH
NB HH,
FB S
IND
1-5
$463
6-10
$356
11-15
$337
16-20
$293
21-25
$294
26-30
$332
31+
$246
$269
$700
$315
$525
$311
$400
$308
$375
$306
$300
$343
$338
$254
$250
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Step 5.
Estimate total remittances by multiplying remittances per
capita by the foreign born population in the U.S.
Total remittances (S*M*P)
Family
Type
Length of residency in the United States (years)
FB HH
NB HH,
FB S
IND
1-5
6-10
11-15
$30,988 $11,400 $6,738
16-20
$4,388
21-25
$8,537
26-30
$3,319
31+
$4,679
$22,038 $14,490 $3,424
$39,200 $15,225 $2,400
$7,380
$750
$1,528
$1,200
$5,490
$338
$5,329
$1,250
$190,088
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Transfers through Charitable Organizations
• BEA collects this information by surveying
charitable organizations
• Captures transfers by foreign-born and U.S.-born
population
• Captures transfers by foreign born to residents of
their home country other than their family (e.g.
some Tsunami aid)
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Questions
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