The Beneficiaries of the Migradollar Phenomenon:
Improvement and Deterioration

Magdalena Rappl
Tennessee Tech University

SECTION I – INTRODUCTION

     The purpose of this investigation is to acquire knowledge on the principal factors influencing the household quality-of-life improvement process associated with the recipiency of migradollars, as well as the quality-of-life deterioration process associated with emigration absenteeism in Latin American and Caribbean (LAC) country families. The secondary purpose is to develop a composite quality-of-life indicator consisting of thirty-five improvement indicators and thirty deterioration indicators. The index is developed by using a feedback and feed-forward process in which the researcher and the respondents are fully integrated.
     Section II describes transnational migradollar markets in a general way, highlights the efforts of international agencies to monitor, measure and improve remittance flows, and sheds light on the conduct and performance of migradollar initiators and recipients. It consists of a literature review of related investigations published during the last five years, with emphasis on international agency endeavors.
     The next phase of this investigation consists of invoking the present value concept and reworking it to incorporate the improvement process stemming from a steady flow of remittances, and the deterioration process stemming from a steady flow of emigration absenteeism experiences. Section III contains a model of quality-of-life improvement and deterioration factors for Latin American and Caribbean family households. The model includes an unconventional set of prescribed components, as hypothesized by this researcher, as reviewed and  suggested by the respondents and as subsequently modified by this researcher. The model explicitly studies the perceived positive rate of return of non-earned income in the form of remittances received. It also studies the perceived negative rate of return of emigration absenteeism in the form of non-expected household hardship.
     In Section IV, this author presents the results of a survey for LAC country immigrants, that addresses the household quality-of-life improvement and deterioration process. The responses are the result of an intense personal communications flow between migradollar originators and recipient administrators, as expressed by the originators. A Composite Improvement and Deterioration Indicator  is developed by assimilating the information compiled in this survey, accentuating the fact that it is the outcome of a feedback and feed-forward mechanism integrating the researcher and respondents.
     The last section, Section V, contains the Summary, Principal Findings, Conclusions and Recommendations.

SECTION II – REVIEW OF THE LITERATURE
International Agency Efforts

     Many organizations are only recently endeavoring to study, monitor, and forecast international migration flows from LAC to the USA, as well as subsequent and corresponding remittance flows and patterns.  The Development Prospects Group (DECPG) is one such group.  It has a work program on Migration and Remittances, responsible for data collection and analysis prepared for The World Bank.  The World Bank, in turn, provides information and policy advice to the global development community.
     In one of its commissioned research efforts, the DECPG reported that world-wide remittances reached a staggering $199 billion in 2006 (The World Bank, 2006e).
     In recent years, most studies of international people flows, focusing on the impact of emigration on countries of origin, thoroughly discussed the reduction in labor supply, and totally ignored remittance flows from the country of destination (Freeman, 2006).   The United Nations General Assembly declared the year 2006 the “Year of Migration and Development,” in response to a developing awareness of the fact that international migration and its implications for growth and development have been largely overlooked (The World Bank, 2006a).  In part, due to the lack of consistent and timely international immigration and remittance statistics, this field of inquiry has been severely under-researched.
     In an attempt to correct this lack of insight and understanding, The World Bank, in conjunction with other international agencies, such as the Bank for International Settlements, is striving to move toward international policy coherence in the area of migration and remittance payment mechanisms.  The World Bank also belongs to another supra national organization, the Global Migration Group, and lends technical support to other similar groups (The World Bank, 2006a).  The World Bank also participates in several diagnostic studies on migration management that evaluate best practices and capabilities of governments around the world (The World Bank, 2006a).
     A volume of conference papers on migration and remittances titled Remittances: Development Impact and Future Prospects was published by The World Bank in November of 2006 (The World Bank, 2006b).  The unifying conclusion reached by the 22 participating scholars was that migration and remittance-friendly policies in both countries of origin and countries of destination could significantly foment development and reduce poverty. 
     Another recent World Bank study on migration and remittances concludes that LAC should not rely too heavily on remittances.  Even though remittances contribute to growth and poverty reduction in LAC, they should not be viewed as a substitute for sound economic development policies.  The report cautions that the benefits from remittance flows have been largely overestimated and have not explicitly taken into account full costs (The World Bank, 2006c).
     Yet another World Bank publication, titled International Migration, Remittances, and the Brain Drain, co-edited by economist Maurice Schiff, (The World Bank, 2006d) concludes that remittances raise levels of child health, school attendance, and capital-intensive and technology-intensive investments in the home country.
     One interesting set of policy recommendations can be found in the World Bank’s annual Global Economic Prospects Report for 2006 (The World Bank, 2006f).  One long-term policy tool to encourage emigrants to consider returning to the country of origin consists of identifying job or investment opportunities for them, allowing dual citizenship, and ensuring the portability of social insurance benefits.
     In addition to the World Bank and the Bank for International Settlements, several other international agencies are in the process of developing recommendations for the improvement of remittance statistics.  The International Monetary Fund (IMF), the World Bank, and the Centre for Latin American Monetary Studies (CEMLA) have joined forces to sponsor an informal working group in order to periodically discuss improvements in collecting and compiling remittance data.  The first meeting of this newly formed group, the Luxembourg Group, in June 2006, focused on the pooling of resources in order to move forward on the standardization of practices and procedures for the development of a compilation guide (IMF, 2006c).  Sixteen countries participated and shared their wide-ranging experience with data systems.  Three of them are summarized below: The Mexican research delegation discussed calculation methodology and information sources (IMF, 2006b).  The Brazilian research delegation discussed data collection checks and future improvements (IMF, 2006a).  Finally, the USA research delegation presented the Bureau of Economic Analysis (BEA) of the U. S. Department of Commerce experience in collecting remittance estimates.  The BEA developed a model-based approach to estimate foreign-born person transfers.  It engages in the continuous improvement of data compilation via the self-assessment of strengths and weaknesses (IMF, 2006c).

Migradollar Senders

     An investigative paper prepared for the Independent Task Force on Immigration and America’s Future by the Pew Hispanic Center (Passel, 2005) shows average family income for Hispanic immigrants as a function of duration of residence.  Average family income is clearly higher for those who have resided in the United States for more than 10 years.  Since family income constitutes a principal determinant of savings and remittances, and longer duration of residence increases income, the Hispanic immigrant’s ability to send remittances increases over time.  When singling out naturalized Hispanic immigrants residing in the United States for less than 10 years, Passel found that the average family income is 3% below the income of natives.  Similar families residing in the United States for more than 10 years exhibit a family income of about 12% above the income of natives. 
     Concerning the transfer mechanisms used by LAC immigrants, 70% of the remittance senders use traditional and well-known wire transfer for companies, such as MoneyGram or Western Union.  They represent electronic transfers of funds, initiated either by phone or fiber-optic systems, located outside the financial system.  Thirteen percent of the foreign-born remittance dispatchers use depository financial institutions such as credit unions, thrift institutions, and commercial banks.  Of these, 11% have chosen banks for their transactions and only 2% have chosen credit unions.  The remainder, namely 17%, of the remittances to LAC are delivered the traditional way.  They are either sent by mail in the form of a cashier’s check or money order (10%), or they are hand-delivered by friends or relatives visiting the LAC (7%) (Inter-American Development Bank, 2006a).

Migradollar Receivers

     Migradollar recipiency is no longer limited to those living in poverty.  One study found that the distribution of family income of the remittance recipient population is very similar to that of the population at large.  This widespread reliance on remittances is only recently being recognized by policy makers (Inter-American Development Bank, 2006b).
     The cross-country spending patterns of remittance moneys in LAC are remarkably very similar.  Approximately 75% of the funds are allocated for food, housing expenditures and various utilities.  The remaining 25% are distributed among savings, education, direct investment, in a job-and-income-generating activity, real estate purchase, and miscellaneous expenses (Inter-American Development Bank, 2006a).  Unfortunately, the classification categories are very general and not much additional information on remittance allocation decisions is available.  The remittance spending decisions of households in LAC were consolidated into three broad geographical categories: Mexico, Central America, and Ecuador.
     One study querying the development impact of remittances (Inter-American Development Bank, 2006b) found that the attitudes of immigrants from LAC are changing.  Over a ten-year span, a large proportion expressed an interest in directly investing in LAC, either by purchasing a family home or by opening a small business.  They are very interested in the present and future of their country of origin.  This study also found overall agreement between remittance dispatchers and remittance recipients with respect to the allocation of monies.

SECTION III – THE COMPOSITE QUALITY-OF-LIFE IMPROVEMENT AND DETERIORATION INDICATOR:
A MODEL OF MIGRATORY PATTERNS

     Theoretically, transnational emigration is simplified as a form of human capital investment in which hardships are accepted during early stages with the purpose of obtaining a positive rate of return, in the form of remittances, over extended periods of time.  Likewise, emigration absenteeism is interpreted as a form of human capital disinvestment, which can sabotage and destroy the objective of obtaining a positive rate of return over extended periods of time.
The Composite Quality-of-Life Improvement and Deterioration Indicator:
             PV =
             PV =  

In which:
PV        =    the present value of all future expected streams of improvement and deterioration, consisting of multiple variables
                  listed in Section IV.
Qimp, n    =    quality-of-life improvement, post-migratory phase
Qimp, o    =    quality-of-life improvement, pre-migratory phase
Qdet, n      =    quality-of-life deterioration, post-migratory phase
Qdet, o      =    quality-of-life deterioration, pre-migratory phase
Qimp, net =     net quality-of-life improvement, (Qimp, n – Qimp, o)
Qdet, net   =    net quality-of-life deterioration, (Qdet,n –Qdet, o)
Qc            =    composite quality-of-life improvement and deterioration indicator
T           =    the number of years that the migradollar recipient expects to manage the positive and negative returns
r            =    the rate of discount
Σ           =    the summation of the sequence of yearly quality-of-life improvement and deterioration
Underlying assumptions, based on empirical evidence: (Rappl 2008a, Rappl 2008b)

1. extreme family closeness
2. two families, two locations in two different countries, but one decision-making unit.
3. all decisions are made in open consultation between the two families
4. the closeness and accord persist across time and generations
5. decisions are made keeping in mind the best interest of family members involved
6. the long-term perspective predominates
7. the short-term and intermediate term are considered transitional phases, in which hardships are to be endured in order to obtain long-term rewards

SECTION IV – DATA COMPILATION AND ANALYSIS
Data Compilation

     The survey titled The Beneficiaries of the Migradollar Phenomenon: Improvement and Deterioration, was designed by this author specifically for Latin American and Caribbean (LAC) immigrants and their families. This survey was specifically tailored to produce information in order to generate a quality of life indicator. This indicator consists of an evaluation of the household quality-of-life improvement process associated with migradollars as well as an evaluation of the quality-of-life deterioration process associated with transnational emigration absenteeism.  This survey was conducted on a sample of one hundred and twenty families residing in the Middle Tennessee Area. It was designed in English, translated into Spanish and administered in Spanish in several community centers to the senders of the migradollars.
     This survey was designed and conducted in the spring of 2007. All the responses were collected, compiled and standardized by March of 2007. The participants had several days to understand the questions and their relevance, to gather correct information, to discuss it with their relatives in the United States and LAC, and to formulate their answers, comments, explanations and suggestions. Data on the migradollar senders and recipients alike was gathered by soliciting information from the migradollar senders.

Data Analysis

Salient Demographics
     In order to understand the salient demographic characteristics of this statistical sample, the respondents were asked how long they had lived in the United States.  The following distribution emerged:  One-half of the respondents had lived here less than five years, one-third had lived here between five and ten years, and eight percent, more than fifteen years. 
     Taking into consideration that over 80 percent of the respondents had lived in the United States for less than one decade, this researcher hypothesized that the practice of sending remittances would be a very common occurrence.  Indeed, it was observed that one-half of the respondents send remittances habitually, regularly, purposefully, and systematically.  Another group, 42%, sends remittances less regularly, sometimes, spontaneously, and when needed.  Eight percent did not respond.
     In order to achieve a more complete understanding of the defining demographic features of this sample, respondents were asked to state their country and region of origin.  On an  aggregated basis, it was found that only nine percent of the respondents are originally from Mexico, and the overwhelming majority are from Central America.  The countries of the Central American Isthmus most generously represented were Guatemala, Nigaragua, and Honduras, expressed in descending order.  South American and Caribbean respondents were not represented in this sample.
     It was previously found that even though two separate family units in two separate geographic regions are involved, the decision-making process is one and the same.  Deciders act with total, complete, and unequivocal unity of purpose (Rappl, 2008a; Rappl, 2008b).

Migradollars and Emigration Absenteeism: Improvement and Deterioration:
Part I: Improvement

     After obtaining this information, the author hypothesized that the quality of life had improved somewhat for the remittance recipients in the country of origin.  In order to substantiate this assumption, the respondents were asked directly whether they thought that the quality of life had improved for their family left behind.  Their responses generated a bimodal distribution with very complicated and involved dynamics.  The results were somewhat unexpected.  One-half of the respondents stated that, overall, the quality of life had improved for the family left behind due to remittance availability.  Eight percent stated that the quality of life had not improved.  42% responded, in a cautious way, that the standard of living for their family left behind had risen some.  Therefore, a more thorough analysis of gains and losses associated with the total migration experience is necessary. 
     In what follows, the author focuses on an analysis of the improvement and deterioration components of the emigration and family separation experience, from the perspective of the family left behind.  Additionally, the author presents an analysis of improvement and deterioration of the family environments associated with the availability of remittances, also from the perspective of the family left behind.  Migration is viewed as an alternative to achieve economic betterment, and remittances are viewed as a goal along with increased spending, savings, and investments.  Therefore, the family left behind is impacted by both the alternatives and the goals.  There do exist unintended side-effects that adversely affect the intended results.

Quality-of-Life Packages

     This author asked the respondents to study two quality-of-life packages with the purpose of analyzing opportunities and threats. 

1. Quality-of-Life Package One.  It primarily reflects the Management of Remittance Funds.
2. Quality-of-Life Package Two.  It primarily reflects the Management of Transnational Emigration Absenteeism.

Quality-of-Life Package One

     The first package is presented in Table 1.  Respondents were given the option of strongly agreeing (A), remaining neutral (N), or strongly disagreeing (D).  They also had the opportunity to comment on each category. 
     What follows is a summary of the commentaries provided by respondents on the positive quality-of-life indicators and enhancements attributable mainly to remittances, for their families in Latin America.

1. More economic stability currently exists in the form of a shield against unexpected layoffs or a family catastrophe for 50 percent of the recipient families.  The other 50 percent are beginning to move in this direction
2. Better housing, appliances and furnishings are present in the visionary stage for a better future, as indicated by 83 percent of the respondents.  Few families, namely only 17 percent, have started the savings, the expansion, or the land acquisition phase required for better housing.
3. More regular school attendance for young family members is already a reality for 83 percent of the recipient families.  One remaining 17 percent are beginning to understand the need for education and are moving in this direction.
4. Fewer economic needs, strictly at the subsistence level, are going unfulfilled.  Specifically, 83 percent of the respondents indicated that needs at the subsistence level are currently being met.  The other 17 percent believe that they can move in this direction of having their basic family needs met very soon.
5. Concerning an enhanced ability to purchase basic goods and services above the strict subsistence level, one-third stated it is currently possible, 58 percent stated that it is not feasible on a continuing basis at the moment, and nine percent indicated that family members can’t even begin to think in these terms.
6. Concerning more safety in the area of not being forced to seek high-interest loans or predatory assistance, or bartering family belongings for enhanced cash flows, one-half of the respondents indicated that this is an accomplished reality, one-third indicated they are still moving in this direction, and 17 percent expressed an inability to untangle themselves from predatory practices being forced on them.
7. Concerning more access to health care and better health for the Latin American family left behind, one-half responded that their family is able to receive good and sufficient preventive and curative health care.  41 percent responded that good and sufficient health care is a vision or an approaching reality, but not a fact yet.  Nine percent do not have their health care needs met, and have very limited hopes.
8. Concerning more access to transportation, 83 percent of the respondents indicated that their families are now able to pay for the mass transit fares more easily and frequently.  They are also able to pay urban bus fares, to pay collective cab fares, to pay baronesa bus fares in rural areas, pay collective truck fares to town or the market place more easily.  17 percent responded that public transportation fares still represent a considerable outlay and still represents a burden to them.  For over 95 percent, private transportation is still an item in the visionary stage.
9. Concerning an enhanced flexibility to change jobs, occupations, or employers, only 25 percent of the respondents indicated that remittances have contributed to facilitating this process currently.  Over 58 percent indicated that remittances do not have a direct and visible impact on this process.  17 percent believe that remittance recipients are not able to transition to a state of unemployment and engage in a leisurely job search in order to find more appropriate, better paying, and less arduous employment.
10. With regards to better health due to a better lifestyle, only 25 percent of the respondents believed that their family members exhibited visibly better health attributable to a better quality of life.  Two-thirds expressed observing some indications of better health and surely envisioned it for the future of their family.  The remaining 9 percent have not perceived a real connection between remittances, a better lifestyle, and better health.
11. Concerning an enhanced ability to celebrate special occasions and family successes, 83 percent of the respondents stated that this is not a current priority or a possibility.  Celebrations requiring a considerable percentage or remittance funds might someday take place.  17 percent are currently unable and unwilling to include this category.  It is not recognized as an item of importance.
12. In terms of the ability to enjoy life a little more than in the pre-remittance stage, 41 percent of the respondents strongly agree that their families can enjoy their life a little more, overall.  59 percent indicate their enjoyment of life, as perceived by remittance recipients, has barely changed, but do not rule out the possibility of change.
13. With regards to an increased opportunity to visit their family members due to more access to remittances, only 9 percent feel the visits have increased, and 91 percent feel that the frequency of visitations remains unchanged.  Two explanations were presented, namely most close relatives live nearby, and the chasm between remittance recipients and non-recipients has widened.
14. In general, 87 percent of the remittance recipients, as indicated by the respondents who represent them, tend to have fewer income worries, household expense worries, and cash-flow worries.  17 percent continue to have financial worries, and remittances have not altered this condition.
15. Concerning the topic of financial freedom to implement useful ideas stemming from the respondent, only 33 percent thought that their ideas could be implemented with the marginal increases in income due to remittances.  The other two-thirds thought that the ideas could be implemented in the future, but that current financial constraints did not allow it.
16. With respect to an enhanced opportunity for their relatives in Latin America to live a life free of debts, 59 percent of the respondents stated that this is a reality, a top priority, and a sustainable goal.  They strive to inculcate this idea on the younger generation.  41 percent are single-mindedly heading in this direction, hope to reach this goal shortly, and hope to remain in a debt-free environment.
17. The additional benefits happening to their families in Latin America were discussed in a follow-up question and were clustered into ten main categories. Additionally, eight preliminary suggestions were advanced, bringing the advantages to thirty-five.  Table 1 incorporates the feedback and feed-forward process.

Migradollars and Emigration Absenteeism: Improvement and Deterioration:
Part II: Deterioration

     Goals, accomplishments, and relative improvements are easily and openly discussed with friends and family.  Activities, milestones, and goals are readily verbalized and analyzed.  However, the respondents do not like to think about setbacks, failures, and relative deterioration of life’s conditions in Latin America.  The respondents were asked to think about the possibility of a deterioration in the quality of life of their family in Latin America.

Quality-of-Life Package Two

     The purpose of the following section is to shed light on whether and/or to what extent the quality of life has deteriorated for the respondents’ family in Latin America due to emigration and the separation of the family. The Quality-of-Life Package Two primarily reflects the management of transnational migration-induced absenteeism.  This second package is presented in Table 2.  Respondents were given the option of strongly agreeing, remaining neutral, or strongly disagreeing.  They also had the opportunity to comment on each category.
     What follows is a summary of the commentaries provided by the respondents on the negative quality-of-life indicators and deteriorations attributable mainly to emigration-related absenteeism for their families in Latin America.

1. On the topic of family separation, 17 percent of the respondents agreed that it is a contributing indicator of a deterioration in the quality of their lives, two-thirds stated that it has not visibly affected their lives too much yet, and the remaining 17 percent stated there was absolutely nothing negative about their situation.  They had committed themselves to being one family in two countries.  No other alternative had even entered their minds.
2. Concerning family disintegration, only 8 percent agreed that this is a real possibility or a fact in their lives, three-quarters responded that their families are intact, and seventeen percent responded that it has never been and never will be a concern.  Their level of commitment is permanent and irrevocable.
3. A significantly different response distribution emerged for the topic of less child supervision.  One-half stated that this is indeed a matter of concern, that children, teenagers and younger adults do have fewer adults to supervise them, to counsel them, to accompany them outside the home, or to simply be there in the home. One-third felt it was not much of an issue.  17 percent believed it was absolutely a moot topic.  The ratio of guidance-givers to guidance-takers was still very high, according to them.
4. With respect to the possibility of fewer adult role models, eight percent of the respondents replied that this had brought deleterious consequences to their family, three-quarters replied that there were still enough good role models present, and 17 percent stated that this was absolutely not a matter of concern.
5. Querying any possible reductions in the amount of inter-personal communication time allocated to their family as an indicator of possible quality-of-life deterioration, one-third of the respondents indicated that they have less family time to discuss life’s issues. They do use phone and Internet communication modes, but have observed that they generally have less time in both families.  Now that the family is separated, both sides have more chores to accomplish on their own.  59 percent indicated that the quantity and quality of family time to discuss life’s issues had not visibly or discernibly changed.  8 percent stated that there was no difference in the pre-emigration and post-emigration period.
6. When addressing the topic of personal faith and the possibility of less worship time, one-third of the respondents stated that this lack of worship time as a family unit had adversely affected them, 59 percent replied that the worship time was still as beneficial and regular, and 8 percent replied that this activity continued as it always had.
7. Concerning the topic of less discipline on the part of younger people in the households left behind, one-quarter replied that this was indeed a matter of concern.  59 percent replied that the discipline was a habit and was expected to continue.  All family members were expected to do their part.  17 percent stated it was absolutely not an issue.
8. The possibility of less personal responsibility on the part of the adults to guide the family and provide for the family was broached.  One third indicated that there were some indications of this, 59 percent replied it was not an issue, that personal responsibility levels had not diminished, and 8 percent adamantly rejected this possibility.
9. On the topic of less ambition and desire for self-improvement induced by the growing and significant non-earned income component of the budget of the family left behind, 17 percent replied that they had noticed some visible signs of complacency, three-quarters replied that the family continues to pull together and is uniformly desirous of self-improvement.  8 percent denied this possibility.
10. On the topic of the adoption of more vices and bad habits, the responses differed from previous response patterns.  41% indicated that vices and bad habits had permeated the family’s ethical sanctuary, and had affected at least one member.  The family member could belong to the immediate or extended family.  This was a recent occurrence since the e-migration of the respondent took place.  59 percent responded that their family had not had to deal with the effects of new vices or bad habits.
11. Respondents were asked whether they felt that they had a diminished ability to stop bad influences from affecting their family in Latin America, as a consequence of their absence.  This included personal, social, and cultural influences.  Only eight percent admitted to a diminished ability to stop bad influences.  Eight-four percent replied that their abilities to influence and guide their family members remained totally intact, especially now that they had established themselves as a strong household provider.  Eight percent used this opportunity to remind this author that they continued exercising the role of head-of-household.
12. Concerning the topic of a lessened ability to help their family day-by-day, one-third admitted to this fact in the areas of directly performing functions or chores for their families.  60 percent replied that they have demonstrated a heightened financial ability to help their family and that this fact more than compensates for the reduction in functions and chores.  8 percent responded that, on the contrary, they considered their abilities exercised here as the main reason for the increased well-being of their family in the country of origin.
13. With respect to the topic of more disorder and disorganization in the household as a consequence of their absence, one-third stated that things were somewhat more relaxed, inconsistent, and spontaneous, but daily routines in general were still to be followed.  Fifty-nine percent stated that their households in Latin America continued to be orderly and organized.  Eight percent replied that the daily routines had not, and would not be, altered under any circumstance.  All family members had their position and role to fulfill to the best of their ability.
14. In the area of possible diminished school attendance due to the relaxation of household rules due to the absence of the respondent, 17 percent replied that there had been incidents of this sort.  Some were corrected, and some were not.  However, three-quarters responded that school attendance, technical training programs attendance, and university attendance behavior remained intact, and that the youngsters were dutiful, and the older children and young adults were highly self-motivated.
15. Likewise, the personal safety and security factor had not changed very much.  Only 17 percent had experienced a feeling of diminished safety attributable to the absence of a male head-of-household.  But three-quarters are reported to live in extended family environments where safety is not an issue, nor a heightened issue in the post-emigration stage.  Eight percent view this as an insignificant issue.
16. Concerning interpersonal modes of communication and rules of respect for elders and persons in authority positions within the family, 17 percent of the respondents indicated that there was less respect inside the family since emigration took place.  Three-quarters replied that the rules of conduct and respect for the family had not been rewritten.  Eight percent stated that this had been a testing ground to show even more respect and appreciation.
17. A slightly related topic, dealing with a measure of respect outside the family and accorded to the family since the respondent had emigrated, is also contained in Quality-of-Life Index Package Two.  75 percent of the respondents replied that their family remains respectable, respected by outsiders like friends, neighbors, and the community.  Eight percent replied that the respectability factor could be increasing due to the transnational nature of the family.  17 percent expressed a concern that unfortunate happenings had negatively affected the level of esteem others had for the family.
18. When asked whether the family at home had manifested a lesser desire to work, eight percent responded that this was indeed true.  84 percent responded that their family continued to manifest an exemplar work ethic at all levels, and eight percent replied that the family takes pride in its Hispanic work ethic.
19. When the respondents were asked whether the families receiving remittances had manifested a dampened desire to earn their own complementary income, one-third agreed and offered harsh working conditions accompanied by low-paying wages as an explanation.  42 percent stated that their families continued to earn their regular income.  One-quarter replied that the family in Latin America had demonstrated a heightened desire to earn more and was succeeding through various means.  They, too, wanted to earn more income.
20. Addressing the concern as to whether the children had exhibited a lesser desire to excel in school and to get an education, one-third of the respondents replied that there were some indications of this.  Two-thirds stated that the children continued performing well in school and that their academic performance and attendance had not changed.
21. Concerning any additional disadvantages associated with emigration absenteeism, no additional follow-up suggestions were made.  However, nine preliminary suggestions were advanced, bringing the disadvantages to thirty.  Table 2 incorporates the feedback and feed-forward process.

     This discussion of the perceived positive rate of return on remittances and the perceived negative rate of return on emigration absenteeism facilitates an understanding of the value system and decision-making process guiding the behavior of LAC families.     The household decision-making process is in essence a family management process that reflects multiple optimization processes. The household management process is a balancing act.  Theoretically, it becomes a function of a dual nature: maximizing the rate of positive returns of remittances and minimizing the rate of negative returns of absenteeism.

SECTION V
SUMMARY, PRINCIPAL FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS
Summary of Investigation Process

    The purpose of this investigation was to acquire knowledge on the principal factors influencing the household quality-of-life improvement process associated with the recipiency of migradollars, as well as the quality-of-life deterioration process associated with emigration absenteeism in Latin American and Caribbean (LAC) country families. The secondary purpose was to develop a composite quality-of-life index consisting of thirty-five improvement indicators and thirty deterioration indicators.

Principal Findings

• The process of improvement and deterioration associated with remittances and emigration absenteeism is complex.
• In summary, 84 percent of the respondents were beginning to see overall progress and improvements due to remittance funds allocations.
• In summary, only 8 percent of the respondents were beginning to recognize overall deteriorations due to emigration absenteeism.

Conclusions

     Transnational emigration is viewed as a form of human capital investment in which hardships are accepted during early stages with the purpose of obtaining a positive rate of return, in the form of remittances, over extended periods of time.  Likewise, emigration absenteeism is viewed as a form of human capital disinvestment, which can constrain or destroy the objective of obtaining a positive rate of return over extended periods of time.
     The Composite Quality-of-Life Improvement and Deterioration Indicator is one way of studying the transnational family management process, and reflects multiple smaller optimization processes.
     Manipulation of the components of the Index by migradollar dispatchers and recipients is possible, and indeed a common practice.  In an attempt to maximize the positive rate of return of remittances, and correspondingly minimize the negative return on migration absenteeism, deciders actively engage in certain activities and suggest certain prescriptions.  This process would suggest that transnational migrants and their families live and act out a process in which:

Qc < 0 →		All approach QC maximization
Qc = 0 →
Qc > 0 →

Recommendations

     A possible outcome of this investigation was to generate a mechanism whereby decision makers might better understand some of the underlying reasons for transnational migration.  This understanding could assist in the development of guidelines and recommendations regarding how to engage in targeted assistance to LAC countries. 

REFERENCES

Freeman, R. B.  (2006 Spring).  People flows in globalization.  Journal of Economic Perspectives (20)2: 145-170.
Inter-American Development Bank.  (2006a).  Migrant remittances. Retrieved November 21, 2006 from
       http://www.iadb.org/mif/remittances/markets/senders.cfm
Inter-American Development Bank.  (2006b).  Sending money home: Leveraging the development impact of remittances. 
       Washington, D.C.  Retrieved from www.iadb.org/mif.
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Table 1
Quality-of-Life Package One: Management of Remittance Funds
Preliminary (p) and Follow-up (f) Suggestions Included

• If there arises an unforeseen need, and it is openly communicated, there exists a real possibility that the remittance sender can help.
• A larger proportion of more educated and professional persons in the family can also start contributing financially and solve problems.
• The family left behind could exhibit an enhanced ability to do and initiate things on its own.
• The family left behind could show an enhanced ability to carry out its own building and construction projects.
• Some families are receiving an enhanced opportunity to leave agricultural jobs and gravitate to self-employment in this sector, or to another sector.
• Some families are able to enjoy a higher level of personal safety and security, devolving from day jobs, better transportation, acquisition of doors and locks, and enhanced ability for some members to stay home in a children’s supervisory capacity.

Agree

Neutral

Disagree

1

Family separation

.17

.77

.17

2

Family disintegration

.08

.75

.17

3

Less child supervision

.50

.33

.17

4

Fewer adult role models

.08

.75

.17

5

Less family time to discuss life

.33

.59

.08

6

Less worship time

.33

.58

.08

7

Less discipline because of absent adults

.24

.59

.17

8

Less responsibility to guide and provide for family

.33

.59

.08

9

Less ambition and desire for self-improvement

.17

.75

.08

10

More vices

.41

.59

.00

11

Less ability to stop bad influences

.08

.84

.08

12

Less ability to help family day by day

.33

.59

.08

13

More disorder

.33

.59

.08

14

Less school attendance

.17

.75

.08

15

Less safety

.17

.75

.08

16

Less respect inside the family

.17

.75

.08

17

Less respect from outside the family

.17

.75

.08

18

Less desire to work

.08

.84

.08

19

Less desire to earn income

.33

.42

.25

20

Less desire in children to excel in school, get an education

.33

.67

.00

21

Other disadvantages:

.33

.59

.08

22p

Some complacency in young adults undermining assistance

.24

.68

.08

23p

Dispatchers and recipients not pulling weight equally

.41

.51

.08

24p

Impossibility to travel

.50

.42

.08

25p

Deterioration of mental attitude

.38

.50

.12

26p

Separation-related discouragement

.38

.50

.12

27p

Deterioration physical health

.38

.54

.08

28p

Deficient nutrition due to less food preparation time

.17

.75

.08

29p

Realization separation might be forever

.50

.42

.08

30p

Impossibility to get together periodically

.50

.38

.12

Expanding on the miscellaneous category No. 21 above, respondents were summoned to describe additional Quality-of-Life Indicators, related to emigration-induced absenteeism.  They unanimously omitted this category and stated that they could not currently think of any other indicators of deterioration.  Previously, respondents suggested another set of nine indicators, which can be found under preliminary indicators.  This brings the number up to thirty.