Remittances and the Dominican RepublicSurvey of Recipients in the Dominican Republic

Survey of Senders in the United States

Columbia University

New York City

November 23, 2004

2

I. The U.S. Sample

• National sample of Dominican adult immigrants in the United States.

• 801 national interviews conducted from October 18 to October 30 with a margin of error of 4 percentage points.

• 567 interviews of regular remittance senders.

3

States where interviews were conducted

Interviews were conducted in the 5 states where 90% of the Dominican adult immigrant population resides in the United States

3%

9%

10%

11%

57%

0% 10% 20% 30% 40% 50% 60%

Rhode Island

Massachusetts

Florida

New Jersey

New York

II. Demographics of Dominican Immigrants in the United States

that send Remittances on a Regular Basis

5

Residency in the United States

4%

65%

17%

14%

0% 10% 20% 30% 40% 50% 60% 70%

Don't know / Noanswer

More than 10 years

5 to 10 years

Less than 5 years

6

Annual Income

33%

7%

22%

38%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Don't know / Noanswer

More than $40,000

$20,000 - $40,000

Less than $20,000

7

Education

12%

3%

13%

24%

21%

7%

17%

0% 5% 10% 15% 20% 25% 30%

College graduate / Graduate school

Technical school

Some college

High school graduate

Some high school

Primary school

Less than primary school

8

Age

12%

26%

34%

17%

7%

0% 10% 20% 30% 40%

65 or older

50 - 64

36 - 49

25 - 35

18 - 24

9

Gender

58%

42%

0% 10% 20% 30% 40% 50% 60% 70%

Female

Male

10

Citizenship Status

5%

3%

57%

35%

0% 10% 20% 30% 40% 50% 60%

No answer

Undocumentedimmigrant

Legal resident

Citizen

11

III. Remittance Senders• 71 percent of the estimated 1 million (U.S. Census

2003) Dominican adult immigrants in the United States send remittances on a regular basis.

• Our study indicates that approximately 710,000 Dominican immigrants living in the United States send about $1.6 billion to their families on a yearly basis. Each remittance averages approximately $150.

• Our study also indicates that Dominicans living in the U.S. send money home about 15 times per year.

12

Remittance Senders in the United StatesHave you ever sent money to your relatives in the

Dominican Republic?

71%

15%

14%

Yes

Yes, but notwithin the lastyear

No

13

How often do you send money to your relatives in the Dominican Republic?

Average – 15 times a year

4%

7%

13%

42%

26%

0% 10% 20% 30% 40% 50%

Once a year

2 to 3 times a year

4 to 6 times a year

Once a month

More than once amonth

14

How long have you been sending money to your relatives in the Dominican Republic?

69%

11%

12%

5%

0% 10% 20% 30% 40% 50% 60% 70% 80%

More than 5 years

3 to 5 years

1 to 3 years

Less than a year

15

How much money – on average – do you send with each remittance?

Average – $150

7%

3%

2%

1%

3%

18%

46%

20%

0% 10% 20% 30% 40% 50%

Don't know / No answer

More than $500

$401 - $500

$301 - $400

$201 - $300

$101 - $200

$51 - $100

Less than $50

16

How do you send the money to your relatives in the Dominican Republic?

0%

2%

3%

10%

84%

0% 20% 40% 60% 80% 100%

Internet

Bank

Credit union

Mail / Courier

International MoneyTransfer Company

17

How many people do you send money to?

7%

7%

16%

23%

46%

0% 10% 20% 30% 40% 50%

Five or more

Four

Three

Two

One

IV. Dominican Remittance Senders in the United States and

the Banking System

19

Do you have a bank account in the United States?Dominican Remittance Senders

47%

2%

51%

Yes

No

Don't know /No answer

20

Do you have a bank account in the United States?Income

“Yes” answers only

71%

43%

0% 20% 40% 60% 80%

$20K a year ormore

Less than $20K ayear

21

Do you have a bank account in the United States?Citizenship Status

“Yes” answers only

41%

59%

0% 10% 20% 30% 40% 50% 60% 70%

Legal resident

Citizen

22

Do you have a bank account in the Dominican Republic?

27%

2%

71%

Yes

No

Don't know /No answer

23

V. The Dominican Sample

• National sample of adults in the Dominican Republic.

• 2999 national interviews conducted from October 18 to November 5 with a margin of error of 2 percentage points.

• 1133 interviews of regular remittance recipients.

24

Dominican Republic Regions

25

Dominican Republic RegionsRemittance Recipients

11%

35%

24%

30%

0% 5% 10% 15% 20% 25% 30% 35% 40%

East

Santo Domingo

South

North

VI. Demographics of Dominicans that receive Remittances on a Regular

Basis

27

Monthly IncomeDominican Adults

8%

4%

8%

11%

19%

28%

20%

2%

8%

4%

8%

11%

19%

25%

23%

2%

0% 5% 10% 15% 20% 25% 30%

Don't know / No answer

More than $600

$400 - $600

$300 - $400

$200 - $300

$100 - $200

Less than $100

No monthly income

AllDominicans

Remittancerecipients

28

EducationDominican Adults

13%

4%

31%

17%

14%

7%

14%

15%

5%

26%

15%

14%

9%

16%

0% 5% 10% 15% 20% 25% 30% 35%

College graduate / Graduate school

Technical school

Some college

High school graduate

Some high school

Primary school

Less than primary school

AllDominicans

Remittancerecipients

29

AgeDominican Adults

6%

11%

18%

32%

33%

7%

13%

18%

30%

31%

0% 10% 20% 30% 40%

65 or older

50 - 64

36 - 49

25 - 35

18 - 24

AllDominicans

Remittancerecipients

30

GenderDominican Adults

57%

43%

51%

49%

0% 10% 20% 30% 40% 50% 60%

Female

Male AllDominicans

Remittancerecipients

31

Where does your relative live?Remittance Recipients

3%

21%

20%

56%

0% 10% 20% 30% 40% 50% 60%

Latin America /Other

Europe

Puerto Rico

United States

32

Where does your relative live in Europe?

2%

1%

1%

2%

4%

8%

11%

18%

53%

0% 10% 20% 30% 40% 50% 60%

Other

Portugal

England

Germany

Netherlands

Switzerland

France

Italy

Spain

33

Where does your relative live in the Americas?

10%

19%

20%

22%

29%

0% 5% 10% 15% 20% 25% 30% 35%

Mexico

South America

Venezuela

Central America

Caribbean

34

• 38 percent of Dominican adults receive remittances on a regular basis. According to the Oficina Nacional de Estadisticas (ONE), there are approximately 5.1 million Dominican adults.

• Our study of remittance recipients in the Dominican Republic shows that 1.9 million Dominicans receive about $2.7 billion in remittances every year. An estimated $1.6 billion comes from the United States and the other $1.1 billion from Europe, Puerto Rico, and the rest of the world.

• The average remittance received is $141.• The average Dominican receives a remittance 10 times a

year.

VII. Remittance Recipients

35

Regular Remittance Recipients in the Dominican Republic

Are you receiving money from a relative living abroad?

38%

62%

Yes

No

36

How often do you receive money from your relative living abroad?Average – 10 times a year

1%

4%

10%

23%

45%

17%

0% 10% 20% 30% 40% 50%

Less than once a year

Once a year

2 to 3 times a year

4 to 6 times a year

Once a month

Twice a month or more

37

How long have you been receiving money from this relative?

30%

26%

31%

11%

0% 5% 10% 15% 20% 25% 30% 35%

More than fiveyears

Three to five years

One to three years

Less than oneyear

38

How long have you been receiving money from this relative?

22%

29%

33%

14%

36%

24%

29%

9%

0% 10% 20% 30% 40%

More thanfive years

Three to fiveyears

One to threeyears

Less than oneyear United States

Puerto Rico /Europe / LatinAmerica / Other

39

How much money – on average – do you receive with each remittance?

Average – $141

1%

1%

2%

4%

6%

9%

15%

21%

24%

16%

0% 5% 10% 15% 20% 25% 30%

25,001 pesos or more

20,001 - 25,000 pesos

17,501 - 20,000 pesos

15,001 - 17,500 pesos

12,501 - 15,000 pesos

10,001 - 12,500 pesos

7,501 - 10,000 pesos

5,001 - 7,501 pesos

2,501 - 5,000 pesos

2,500 pesos or less

40

How do you collect your remittance?

2%

12%

14%

72%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Bank

International MoneyTransfer Company (in

office)

Mail / Courier

International MoneyTransfer Company (in

house)

41

Are you satisfied with the services of your current international money transfer company?

3% 3%

94%

Yes

No

Don'tknow /Noanswer

42

How is the money used?

6%

4%

5%

5%

17%

60%

0% 10% 20% 30% 40% 50% 60% 70%

Luxuries / Other

Invest in a property

Savings

Invest in a business

Education

Daily expenses

43

Do you use the money from the remittance as collateral to get a bank loan?

Respondents who invest in a business, a property or savings only*

14%

71%

15%

Yes

No

Don'tknow /Noanswer

44

Is your remittance shared with another person? If so, how many people?

30%

29%

27%

12%

0% 5% 10% 15% 20% 25% 30% 35%

Not shared

Yes, with three otherpeople or more

Yes, with two otherpeople

Yes with one otherperson

45

How often do you communicate with your relative?

1%

1%

3%

20%

52%

23%

0% 10% 20% 30% 40% 50% 60%

Don't know / No answer

Almost never

A few times a year

Once a month

Once a week

Daily

46

Was there an agreement to send remittances before your family member left?

6%

58%

36%

Yes

No, it came upafterwards

Don't know /No answer

VIII. Dominican Remittance Recipients and the Banking

System

48

Is there a bank near your home?Remittance Recipients

27%

73%

Yes

No

49

Do you have a bank account?

66%

34%

58%

40%

0% 10% 20% 30% 40% 50% 60% 70%

No

Yes AllDominicans

Remittancerecipients

50

Do you have a savings account?Respondents who have a bank account only

1%7%

92%

Yes

No

Don't know /No answer

51

Why do you not use your bank account to receive remittances?

Respondents who have a bank account only

21%

57%

5%

17% I don't think that mybank offers theservice

The service isexpensive

I prefer my currentservice

Don't know / Noanswer

52

Do you know how to operate an automatic teller machine (ATM)?

Remittance Recipients2%

17%

81%

Yes

No

Don't know /No answer