Bridging Borders: The Economic Dynamics of Family Support and Remittances Among Asian and Hispanic Americans

• In Event: Economic Mobility and Family Systems: Policy, Wealth, and Inequality

Abstract

Asian Americans number approximately 25 million, representing about 7% of the total U.S. population, with 54% being foreign-born, while Hispanic/Latino populations total about 68 million, accounting for roughly 20% of the U.S. population, with 33% foreign-born (U.S. Census Bureau). Given that both groups often rely on family-based financial support, this study examines how international remittances received and sent from family abroad are associated with their household wealth.More than half of immigrants send remittances abroad for various reasons, including smoothing income shocks for family members overseas, diversifying investments, and fulfilling cultural expectations of mutual family support. Much of the existing research has focused on the relationship between remittance flows and poverty reduction in recipient countries, with the majority of the literature examining the macroeconomic impacts of remittances in developing economies. At the same time, Asian American and Latino populations maintain strong social and familial ties, which shape their financial behaviors and cross-border support systems. For example, Filipinos in the United States tend to remit more as their incomes increase and may also support family migration for economic advancement, while Chinese migrants often remit to cover family living expenses, repay migration-related debt, and support elderly relatives. Despite this growing body of work on remittance motivations and macroeconomic effects, there remains a notable gap in the literature: very little research has examined how remittances affect the household wealth of Asian American and Latino populations.To examine this, I use multiple data sources, including the Survey of Income and Program Participation (SIPP) from the U.S. Census Bureau, the bilateral remittance matrix from the World Bank (KNOMAD), and the American Community Survey (ACS). The analysis focuses on two years of datasets, 2018 and 2021, and includes a total sample of 17 country groups, including 7 Hispanic/Latino countries and 5 Asian countries. Key variables of interest include remittance inflows and outflows as well as measures of household wealth.For the method, I first provide descriptive statistics to summarize remittance patterns. Second, I run the Mann–Whitney test to assess group differences. Lastly, I use cluster analysis to identify underlying patterns across each racial group.My preliminary findings show that remittance outflows among Asian Americans are significantly more associated with higher wealth than among Latino immigrants.

Author

• Sohyon Pak, University of Massachusetts Boston
  Presenting Author