Inter-American Development Bank

Document Sample
Inter-American Development Bank Powered By Docstoc
					Remittance Recipients in Ecuador
A Public Opinion Research Study

         March - May 2003
             A. National Poll
• 3,320 interviews with a representative sample of all
  Ecuadorian adults.
• The margin of error for the national poll is 1.8
  percentage points.
• The national poll includes a sub-sample of 476
  Ecuadorians that receive money from relatives in
  foreign countries.
• The margin of error for the sub-sample of remittance
  recipients is 4.7 percentage points.
• CEDATOS – Gallup International Ecuador
  conducted the field work for poll in March – April
                                                    2
  of 2003.
The Remittance Recipients Sample
           476 interviews


   100%                                              100%

18 years of age                                    Ecuadorians
   or older
                            100%                    residents


                      Receive money from
                  relatives in a foreign country                 3
   Demographics of Remittance
          Recipients
• Remittance recipients in Ecuador are
  overwhelmingly females.
• Remittance recipients in Ecuador have a
  significantly higher monthly income and a higher
  level of education than the average Ecuadorian.
• Remittance recipients in Ecuador – on average -
  are much older than the average Ecuadorian.
• A large majority of remittance senders live in the
  United States, Spain and Italy.

                                                       4
Remittance Recipients
       Gender

                 34%    Male




                        Female
 66%



                               5
Remittance Recipients vs. Ecuador Census
                Gender

                       34%
    Male                                         Remittance
                             50%                 Recipients




                                     66%
   Female                                        Census
                             50%



            0%   20%   40%     60%         80%

                                                              6
         Remittance Recipients
           Monthly Income
60%
                     51%
50%

40%
        26%
30%
                                  19%
20%

10%
                                             3%          1%
0%
      Less than   $250 to $500   $500 to   $1,500 to   More than
        $250                     $1,500     $2,500      $2,500

                                                                   7
Remittance Recipients vs. Ecuador Census
            Monthly Income
   Less than $250             26%
                                              57%

                                        51%         Remittance
     $250 to $500                 27%               Recipients

   $500 to $1,500           19%
                         13%
        $1,500 to   3%
         $2,500     2%                              Census

      More than     1%
       $2,500       1%

                0% 10% 20% 30% 40% 50% 60% 70%
                                                             8
            Remittance Recipients
                 Education
40%
                                       33%
35%
            27%
30%
25%
                          21%
20%                                                    18%
15%
10%
5%
0%
      Grade School Or   Some High   High School   Some College Or
           Less           School     Diploma          More

                                                                9
Remittance Recipients vs. Ecuador Census
               Education
   Grade School                     27%
      or less                                          57%
                                                             Remittance
     Some High                 21%                           Recipients
       School            12%

    High School                           33%
     Diploma             12%
                                                             Census
   Some College               18%
     or More            10%

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

                                                                      10
        Remittance Recipients
                Age
40%
35%                          32%

30%
25%                                     22%
       18%        19%
20%
15%
                                                     9%
10%
5%
0%
      18 to 24   25 to 35   36 to 49   50 to 64   65 or older



                                                                11
Remittance Recipients vs. Ecuador Census
                  Age
    18 to 24                  18%
                                20%
                                                    Remittance
    25 to 35                    19%
                                      25%           Recipients

    36 to 49                                  32%
                                        28%

    50 to 64                     22%
                          15%                       Census

 65 or older          9%
                        12%

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

                                                             12
     Regions of National Poll
• Costa Sur: Guayaquil and Machala
• Sierra Centro: Quito, Ambato and Santo
  Domingo
• Costa Norte: Manta, Portoviejo,
  Esmeraldas, El Carmen and Quevedo
• Sierra Sur: Cuenca, Azogues, and Loja
• Amazon: Nueva Loja and Puyo
                                           13
14
         Remittance Recipients
                Region
40%     37%
                   35%
35%
30%
25%
20%
15%                           12%          11%
10%                                                    6%
5%
0%
      Costa Sur   Sierra   Costa Norte   Sierra Sur   Amazon
                  Centro

                                                               15
Remittance Recipients vs. Ecuador Census
                                Region
      Costa Sur                                 37%
                                                   42%
                                                            Remittance
   Sierra Centro                              35%
                                            31%             Recipients

    Costa Norte               12%
                        3%

      Sierra Sur              11%
                             10%                            Census

        Amazon           6%
                        5%

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

                                                                     16
       Country of Residence of
        Remittance Senders
  Spain                                  44%

   U.S.                             38%

   Italy         10%

Rest of
Europe      4%

 Latin
            4%
America

       0%    10%       20%   30%   40%    50%
                                                17
      How Long Have Your
     Relatives Lived Abroad?

Less than 5 years                             67%



    5 to 10 years        14%



   More than 10
                           19%
      years


                0%   10% 20% 30% 40% 50% 60% 70% 80%
                                                    18
         Type of Relatives that send
                Remittances
Brother / Sister                                    29%

 Son / Daughter                                      29%

Husband / Wife                 13%

Mother / Father                  14%

         Other                   15%

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

                                                           19
   Ecuador Receives $1.4 Billion
   Dollars in Remittances Yearly
• 14 percent of Ecuadorian adults – approximately
  1 million people - receive remittances from
  relatives that live in a foreign country.
• The average Ecuadorian remittance recipient
  gets money from their relatives abroad about 8
  times per year.
• The average remittance sent to Ecuador is
  approximately $175 dollars.

                                             20
            National Poll
          3,320 Interviews
Do you receive remittances from relatives
     that live in a foreign country?
                      14%



                                 Yes




                                 No



            86%                         21
The Average Ecuadorian Remittance Recipient
       gets Money 8 times per year
 How Frequently Do You Receive Remittances?

50%
       46%
45%
40%
35%
                 27%
30%
25%
20%
15%                          12%
                                          10%
10%
                                                         4%
 5%
 0%
      Once A   Every 2-3   Every 4-6   Once A Year    Less Than
      Month     Months      Months                   Once A Year
                                                               22
  How Frequently Do You Receive
           Remittances?
  “once a month” answers by region
    Sierra Sur                                          59%

     Costa Sur                                    51%

National Sample                             46%

  Sierra Centro                            44%

     Amazonia                         38%

    Costa Norte                 30%

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

                                                                23
The average remittance sent to Ecuador is
      approximately $175 dollars
 How much money do you receive with each
             remittance?
      $50 or less                12%

      $51 - $100                                         27%

    $101 - $150           7%
    $151 - $200                              20%

    $201 - $250      4%

    $251 - $300                11%

 More than $300                        16%

                0%   5%    10%    15%    20%       25%    30%
                                                                24
 How much money do you receive
     with each remittance?
  $50 or less               14%
                       9%
  $51 - $100                        23%
                                           30%         United States
 $101 - $150           10%
                  6%
 $151 - $200                 16%
                                    22%
 $201 - $250     3%
                  5%
                                                       Europe
 $251 - $300           9%
                        12%
$300 or more                      19%
                            14%

            0%     10%        20%         30%    40%
                                                                  25
      How Long Have You Been
       Receiving Remittances?
60%
                            50%
50%

40%

30%
           22%
20%
                                           13%            15%
10%

0%
      Less than 1 Year   1 to 3 Years   3 to 5 Years   More than 5
                                                         Years
                                                                     26
 Two-thirds of all remittances that arrive
in Ecuador are sent through International
      Cash Remittance Companies
 • More than half of remittance recipients in
   Ecuador get their money through Delgado
   or Western Union.
 • Only 17 percent of remittance recipients in
   Ecuador get their money through
   established financial institutions.
 • 46 percent of remittance recipients in
   Ecuador have a bank account.
                                                 27
 How Does Your Family Normally
         Send Money?
           Delgado                               34%
    Western Union                     20%
       MoneyGram               8%
             Other        5%


Bank / Credit Union                 17%


         By person             9%
           By mail        5%

                    0%   5% 10% 15% 20% 25% 30% 35% 40%
                                                       28
   How Does Your Family Normally
           Send Money?
           Delgado                                       39%
                                                   32%
    Western Union                            25%
                                       18%
       MoneyGram         3%                                          United
                                11%
                         2%                                          States
             Other            7%


Bank / Credit Union                 14%
                                          18%
                                                                     Europe
         By person            11%
                            8%
           By mail        4%
                           5%
                    0%        10%     20%       30%   40%      50%
                                                                              29
Who chooses the way by which
   Remittances are sent ?
          4%   1%
     8%
                          Sender


                          Recipient


                          Both


                    87%   No Answer


                                      30
    Remittance Recipients
Do You Have A Bank Account?
          4%

                        Yes



                        No
                  46%
   50%

                        No Answer




                                31
  Do You Have A Bank Account?
Country of Residence of Remittance Senders


                                 44%                  United
  Yes
                                                      States
                            37%




                                        56%
  No                                                  Europe
                                          59%


    0%   10%   20%   30%   40%    50%   60%     70%
                                                           32
Do You Have A Bank Account?
         Education
                “yes” answers only
60%
                 53%
50%

40%
                                            25%
30%

20%

10%

0%
      High School Diploma or More   No High School Diploma

                                                             33
        Remittance Recipients
Are you familiar with ATM machines and how
                 to use them?
  70%
             64%
  60%

  50%
  40%
                             31%
  30%
  20%

  10%
   0%
             Yes              No
                                      34
Are You Familiar With ATM Machines And How
                To Use Them?
                  Education
              “yes” answers only
  80%              76%

  70%
  60%
  50%                                          42%

  40%
  30%
  20%
  10%
  0%
        High School Diploma Or More   No High School Diploma
                                                               35
   A large majority of Ecuadorian
   Remittance recipients use the
  money on “regular” expenditures.
• 61 percent of Ecuadorian remittance recipients use
  the money for day-to-day expenditures like paying
  rent and buying food or medicine.
• 22 percent of Ecuadorian remittance recipients use
  the money for long-term investments.
• 17 percent of Ecuadorian remittance recipients use
  the money for “luxuries”.

                                                   36
      How Is The Money Spent?
Regular Expenditures                                         61%


 Business Investments         8%
    Savings Accounts          8%
    Buying Property      4%
           Education     2%


            Luxuries                 17%

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

                                                                   37
      How Is The Money Spent?
              Income

  Less than                                 74%
                 14%                              Regular
    $250                                          expenditures
                12%

                                      60%
 $250 - $500       21%                            Investments
                 17%

                               44%
$500 - $1500       22%                            Luxuries
                      31%

           0%   20%      40%         60%    80%
                                                                38
Who Decides How The Money Is
           Spent?
           1%
     19%

                      Recipient



                      Sender



                      No Answer
                80%

                                  39
The most important Finding of
our Poll may very well be that
   the Remittance Process is
driving Emigration in Ecuador



                             40
 “One of the principal reasons that
people leave Ecuador is so that they
 can send money to their families.”
               1%
         16%
                               Agree



                               Disagree



                               No Answer

                     83%

                                          41
B. Focus Groups




                  42

				
DOCUMENT INFO