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Remittances from Japan to Latin America

Bendixen & Associates April 6, 2005

Inter-American Development Bank


Inter-American Development Bank Annual Meeting Of the Board of Governors

Remittances From Japan to Latin America Study of Latin American immigrants living and working in Japan

April 6, 2005 Okinawa, Japan


I. Methodology Sample

Latin American immigrant adults living in Japan.

Number of Interviews

1,070 interviews

Language of Interviews

Portuguese, Spanish and Japanese

Margin of Error

+/-3 percentage points, margin of error is larger for sub-groups

Dates of Interviews

February 2nd – February 28th of 2005 2


Countries represented in the sample Brazil

Colombia

Peru

Argentina

Bolivia

Paraguay 3


The Sample Design 82%

Brazil

14%

Peru

Other Latin American Country

0%

4%

20%

40%

60%

80%

100% 4


II. Demographics of Latin American Immigrants living in Japan


Latin American immigrants are younger on average than the Japanese population overall. Peruvian immigrants have lived in Japan longer than immigrants from Brazil and other Latin American countries. Most work as laborers or in manufacturing jobs. 6


Residency in Japan 1% Less than five years

25%

Five to ten years

45% Ten years or more Entire life / born in Japan

29% 7


Residency in Japan Brazilians 1%

22%

29%

Less than five years Five to ten years

28% 26%

Peruvians

48%

46%

Ten years or more

0% Other Latin Americans

0%

0%

15%

20%

34%

40%

51% Entire life/ born in Japan

60% 8


Education 12%

2%

14%

Less than high school High school diploma Some college / Technical school

32% 40%

College graduate or higher No answer

9


Education 16% Brazilians

32%

12% 6%

39%

High school diploma 30%

Peruvians 15% Other Latin Americans

0%

7%

35%

7%

20%

Less than high school

40%

47%

Some college/ Technical school

51%

College graduate or higher

60% 10


Age of Latin American Immigrant Population 7% 2% 1%

15%

18-24 25-34 35-49 50-64

38% 37%

65 or older No answer 11


Age 15% 11%

18-24 25-34

18%

35-49

23% 7%

50-64 65 or older 0%

37% 38%

Japanese Population

26%

2%

Latin American Population

23% 10%

20%

30%

40% 12


Gender Male 43%

57%

Female

13


Do you have any children under the age of 18? 2%

Yes, living in Japan

28% Yes, living in Latin America Yes, living in another country

51% No children

18%

No answer

1% 14


Do you have any children under the age of 18? 28% 29%

Yes, living in Japan 18%

Yes, living in Latin America Yes, living in another country

Total population 24%

1% 1% 51%

No children

0%

Remittance senders

44% 10%

20%

30%

40%

50%

60% 15


Annual Income in Japan 16%

Less than $30,000 $30,000 to $50,000

32%

$50,000 to $75,000 $75,000 or more

10% 2% 40%

No answer

0%

10%

20%

30%

40%

50% 16


Annual Income in Home Country 30%

Less than $10,000 $10,000 to $30,000

9%

$30,000 to $50,000 $50,000 or more

3% 1%

No answer

0%

57%

10%

20%

30%

40%

50%

60% 17


What type of work do you do? Laborer / Manufacturing

70% 15%

Service Unemployed / Housewife / Retired

4%

Professional / Skilled

4%

Student

3%

Semi-skilled / Manager

3%

0%

20%

40%

60%

80% 18


III. Migration Patterns


Is this the first time that you have come to live in Japan? 23% Yes

No

77% 20


What was the main reason you decided to move to Japan? Job / Work opportunity / To make more money

49%

Better life

35% 11%

Family and friends in Japan

3%

School

Some other reason

1%

0%

10% 20% 30% 40% 50% 60% 21


IV. Banking Practices


Bank Accounts Over 90 percent of Latin American immigrants living in Japan have a bank account in Japan while less than half have a bank account in their home country.

23


Do you have a bank account in Japan? 8%

Yes

No

92% 24


Japanese bank accounts by nationality Brazilians

93% 7% Yes

Peruvians

87% 12% No

Other Latin Americans

0%

93% 7% 20%

40%

60%

80%

100% 25


Do you have a bank account in your home country? 45%

Yes

55%

No

26


Do you have a bank account in your home country? 45% Yes 53%

54% No 47%

0%

10%

20%

30%

40%

50%

Total population

Remittance senders

60% 27


Do you have a bank account in your home country? 47%

Brazilians

53% Yes 38%

Peruvians

60% No 42%

Other Latin Americans

0%

58% 20%

40%

60%

80% 28


V. Savings and Future Business Plans


Savings and Future Business Plans Most Latin Americans are saving money mainly to improve their quality of life, start a business or buy a home. Many Latin American immigrants plan to start a business in the future.

30


Are you currently saving money? 15%

Yes

No 85%

31


What is the main reason that you are saving money? • Improve quality of life (32 percent) • To start a business in your home country (19 percent) • To buy a house in your home country (14 percent) • Education for children (13 percent) • To start a business in Japan (8 percent) • So I don’t have to work anymore/ retirement (4 percent) • To buy a house in Japan (4 percent) • For some other reason/ luxuries (4 percent) 32


Do you have any plans to start your own business in the future? 14%

Yes, in Japan Yes, in your home country Yes, in some other country

40% 1% 24%

No Don't know / No answer 0%

21% 10%

20%

30%

40%

50% 33


Do you have any plans to start your own business in the future? 14% 13%

Yes, in Japan

40%

Yes, in your home country Yes, in some other country

Total population 49%

1% 1% 24% 20%

No

0%

Remittance senders

10%

20%

30%

40%

50%

60% 34


Plans to start a business in the future By Residency in Japan 7% Less than five years

Yes, in Japan

39% 0% Yes, in your home country

27%

19% Five years or more

Yes, in some other country

42% 2%

No

23%

0%

10%

20%

30%

40%

50%

35


VI. Communication with Family and Remittances


Do you have family back home? 4%

Yes

No

96% 37


How often do you communicate with your family back home? 12%

1%

Once a week or more 31%

19%

Once a month

Few times a year

Don't communicate regularly

37%

Don't know / No answer 38


How often do you communicate with your family back home? 31%

Once a week or more

38% 37% 41%

Once a month

19% 18%

Few times a year Don't communicate regularly 0%

Total population

Remittance senders

12% 4% 10%

20%

30%

40%

50% 39


70 percent of the Latin American adult immigrants living in Japan send remittances on a regular basis. Our study indicates that 304,824 Latin American immigrants living in Japan send about $2.65 billion to their families on a yearly basis. Each remittance averages approximately $600. Our study also indicates that these Latin Americans send money home about 14.5 times a year. Those that send to one person send about 11 times a year and send to an additional relative about 3.5 times a year. 40


Have you ever sent money to a family member back home? 19%

Yes

Yes, but more than a year ago

11%

70%

No

41


Have you ever sent money to a family member back home? 79% Yes

91%

Brazilians

89% Peruvians 21% No

8%

Other Latin Americans

11%

0%

20%

40%

60%

80%

100% 42


How much money – on average – do you send each time? 6%

Less than $100

11%

$100 to $200

21%

$200 to $300

20%

$300 to $400

18%

$400 to $500

16%

More than $500

8%

No answer 0%

5%

10%

15%

20%

25% 43


How frequently do you send money to your family member? 6%

More than once a month

59%

About once a month 4 to 6 times a year

15%

2 to 5 times a year

15%

About once a year

2%

Less than once a year

2%

No answer

1%

0%

10%

20%

30%

40%

50%

60%

70% 44


How frequently do you send money to your family member? 5% Brazilians 4%

16% 15%

About once a month

7% Peruvians 3%

57%

14% 17%

4% Other Latin Americans

8% 1%

0%

More than once a month

59%

4 to 6 times a year

71%

Once a year or less

16%

20%

2 to 5 times a year

40%

60%

80% 45


Do you regularly send money to more than one family member? Yes, two

23%

Yes, three

5% 2% 70%

Yes, four or more No

46


Is there anyone else in your family or household who sends money to your home country? 2% Yes

33% No

65%

Don't know / No answer

47


How long have you been sending money to your family member? 14%

Less than one year

17%

One to three years

24%

Three to five years

25%

Five to ten years

17%

Ten years or more Don't know / No answer 0%

3% 5%

10%

15%

20%

25%

30% 48


How long have you been sending money to your family member? 35%

Less than three years

20%

Three to five years

24% 22%

Five to ten years

24% 23%

Brazilians

Peruvians

14%

Ten years or more 0%

32% 10%

20%

30%

40% 49


Methods of Sending Money A large majority of Brazilian immigrants living in Japan send their money through Banco do Brazil; while most Peruvian immigrants in Japan send money home through Convenio Kyodai or Aelucoop. Over half of these remittance senders pay $10 to $20 each time they send money. Nearly 80 percent of remittance senders say their family members have a bank account in their home country. 50


How do you send money to your family member? 70%

Banco do Brazil

12%

Some other bank

8%

Convenio Kyodai Aelucoop Mail Some other method Don't know / No answer

0%

3% 2% 3% 2% 10%

20%

30%

40%

50%

60%

70%

80% 51


How do you send money to your family member?

Aelucoop Mail Some other method

27%

1%

41%

5% 0% 1%

47% Brazilians

13% 7%

Some other bank Convenio Kyodai

80%

28%

Banco do Brazil

Peruvians 18%

3% 1% 1% 1% 4% 0%

10%

Other Latin Americans 19% 20%

30%

40%

50%

60%

70%

80%

90%

52


What is the amount of the average fee that you pay to send your remittances? 14%

No charge Less than $10

12%

$10 to $20 $20 to $30 More than $30

55% 4% 2%

Don't know / No answer 0%

13% 10%

20%

30%

40%

50%

60% 53


Does your family member that you send money to in your home country have a bank account? 12% Yes

9% No

Don't know / No answer

79% 54


Phone 305.529.9916 Fax 305.529.9069 2800 Ponce de Leon Blvd, Suite 1111 Coral Gables, FL 33134 http://www.bendixenandassociates.com sbendixen@bendixenandassociates.com


Inter-American Development Bank 1300 New York Avenue, N.W. Washington, D.C. 20577, USA Tel: (202) 623 - 1000 www.iadb.org


remittances from japan to latin america