GENDER AND THE REMITTANCE PROCESS

Abstract

This study explores and suggests a methodological approach to the gender dimensions of remittances. It argues that remittances should be seen as a social process and examined in relation to (i) the sending side, (ii) the recipient side and (iii) gendered use of remittances by the households. Focusing on Indonesian domestic workers in Singapore, Malaysia and Hong Kong, and migrant households in Central Java, it explores the gender dimensions of remittance-sending, receiving, control and use, and their development implications. Despite their lower incomes, female domestic workers remit a greater share of their earnings than their male counterparts; they tend to remit to their mothers and sisters rather than to fathers, brothers and husbands. Close to half of the recipients exercise discretion over the use of remittances; female recipients tend to use remittances to invest in human capital and male recipients, in physical capital.

Keywords:

• gender
• remittances
• development
• Indonesia
• Southeast Asia

Acknowledgements

The authors wish to thank the anonymous reviewers of Asian Population Studies for their insightful comments on the draft version of this article. Fieldwork support from UNIFEM East and Southeast Asia is noted with appreciation. The authors would like to thank Fareeha Ibrahim, Ika Malika, Md Harun, AKM Ahsan Ullah, Mhd Iqbal, Maslina Abu Hassan, Devi Novianti, and Nurul Qoiriah for their cooperation during fieldwork.

Notes

1. The transfers in cash (or kind) from migrants to their non-migrating families in the source countries are usually referred to as ‘migrant remittances’ (Bilsborrow et al. 1997, p. 321).

2. Hong Kong Special Administrative Region (Hong Kong SAR); hereafter, we use only Hong Kong to refer to Hong Kong Special Administrative Region

3. Indonesian unskilled (low-skilled category) male migrant workers are not usually invited to work in Singapore and Hong Kong. However, they are found in Malaysia. We interviewed a few Indonesian male migrants in Malaysia to understand their earning patterns.

4. Asian Migration News is a bi-weekly information service aimed at providing scholars, policy-makers, advocates and students with a summary of news and events related to migration in Asia. http://www.smc.org.ph/amnews/amnews.htm

5. See for details, http://www.immd.gov.hk/ehtml/hkvisas_5.5.htm (accessed 22 August 2007).

6. This figure is slightly higher than the existing findings (ADB 2004, p. 231, 2006, p. 226; Asian Migrant Centre 2005, p. 2). According to employment agencies in Singapore, the typical monthly wage for an Indonesian domestic worker is reportedly S$ 250 (US$ 164.07) (ADB 2006, p. 226). The ADB survey found that Indonesian domestic workers earn an average of S$ 285 (US$ 187.05) per month (ADB 2006, p. 231). Another study by the Asian Migrant Centre (2005, p. 21) reports that the average monthly salary of Indonesian domestic workers is S$ 260 (US$ 170.64).

7. Our findings on incomes are slightly higher than the existing findings (Asian Migrant Centre 2005, p. 21; Asian Migration News 15 March 2007; World Bank 2006). For example, the World Bank (2006) reported the average income in Malaysia as RM 350 (US$ 99.92) per month. Asian Migrant Centre (2005, p. 21) reported it as RM 380 (US$ 108.50) per month. According to a source in the Malaysian Association of Foreign Maid Agencies, the wage rate for Indonesian domestic workers is RM 500 (US$ 142.75) (Asian Migration News 15 March 2007).

8. Found during informal interviews of Indonesian male migrants at Kuala Lumpur, Malaysia. This is also supported by some non-governmental organization activists in Malaysia (e.g. Harun, from Tenaganita, Kuala Lumpur).

9. According to a study on male and female Nepalese workers in Hong Kong, Nepalese female migrant workers in the construction industry in Hong Kong are paid less than Nepalese male migrant workers although they both work at the same worksites (Frost 2006, p. 121).

10. Calculated from the average savings of three destination ends, Singapore, Malaysia and Hong Kong (69.8 per cent for Singapore, 77.29 per cent for Malaysia and 61.24 per cent for Hong Kong; see respective Tables for details)

11. Calculated from an average of 1.83 times (for Singapore), 2.1 times (for Malaysia) and 1.49 times (for Hong Kong) figures (see Tables 1–3 for details).

12. Basic consumption of family, debt repayment, house-making/renovation, education, lending money to relatives, donation (socio-religious benefits), land-purchasing, savings, socio-cultural ceremonies, investment (productive), paying of others’ migration cost, medical treatment and others.

13. This is based on the higher frequency of uses from each ranking (1st to 3rd ranking given here). For example, Table 8 suggests that the first top use in the 1st ranking is basic consumption (48 per cent), the first top use in the 2nd ranking except basic consumption is land-purchasing (19 per cent), and the first in the 3rd ranking except for basic consumption and land-purchasing is savings (32 per cent).

14. This is based on the higher frequency of uses from each ranking (1st to 3rd ranking given here). For example, Table 9 suggests that the first top use in the 1st ranking is house-making (26 per cent), the first top use in the 2nd ranking is basic consumption and education (21 per cent each), and the first in the 3rd ranking, except for house-making, basic consumption and education, is ‘others’ (37 per cent). Some unusual expenses (known and unknown) mainly undertaken by male recipients of remittances fall in this category.

15. They are comprised of those items not included in the list of uses of remittances: basic consumption of family, debt repayment, house-making/renovation, education, lending money to relatives, donation (socio-religious benefits), land-purchasing, savings, socio-cultural ceremonies, investment (productive), paying of others’ migration cost, medical treatment. They are often personal in nature. In some occasions, they were gifts, travelling and personal consumption (alcohol and smoking).