Accounting for the time pattern of remittances in the Spanish context

Resumen

It is now well established that the time pattern of migrants� remittances presents an inverted �U� shape, reaching its maximum level after 5 to 10 years of migration experience. From a macro perspective, however, remittances are believed to be a stable source of international revenue for developing countries. Global economic growth, continuous migrant flows, and an inclination to focus on success stories have enabled scholars to elude this obvious paradox; that of remittances fading at the individual level but increasing at the aggregate level. This article will address this paradox specifically by providing evidence of the inverted �U� shape and, more importantly, by investigating the microfoundations of declining remittances in Madrid and the Balearic Islands. Future research will be able to improve predictions on aggregate levels of remittances by combining this type of studies with macro data and adequate micro-macro links.