Bulgarian Migrant Remittances and Legal Status: Some Micro-level Evidence from Madrid

Private transfers from abroad can play an important role in preventing households from falling into poverty and in stimulating economic development through investment. In spite of the scale of migrant remittances for Bulgaria at the macroeconomic level, there is limited understanding regarding their determinants at a micro-level.

This paper attempts to fill the gap in our understanding of the factors that influence the flow and scale of migrant remittances to Bulgaria using microlevel data. A particular focus is placed on the role of a migrant's legal status in the remittance determination process. This paper reports estimates for remittance functions using data drawn from a unique survey conducted among legal and illegal Bulgarian immigrants in the city of Madrid in late 2003 and in the early months of 2004.