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A Profile of Brazilian Remitters in Massachusetts July 2007

A Profile of Brazilian Remitters in Massachusetts July 2007. Alvaro Lima & Pete Plastrik. INTRODUCTION. This research was done by the Transnational Community Development Network - TransComm - in partnership with the Innovation Network for Communities – INC;

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A Profile of Brazilian Remitters in Massachusetts July 2007

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  1. A Profile of Brazilian Remitters in Massachusetts July 2007 Alvaro Lima & Pete Plastrik

  2. INTRODUCTION

  3. This research was done by the Transnational Community Development Network - TransComm - in partnership with the Innovation Network for Communities – INC; • INC is a national non-profit organization focused on supporting civic entrepreneurs to develop and spread scalable innovations that transform the performance of community systems; • TransComm’s mission is to help immigrant communities in the U.S. to develop their economic, political and social-cultural transnational capitals.

  4. This research was funded by a grant from the Kellogg Foundation and completed during the period May-July 2007; • The research traces the demographic profile, the pattern of use of remittances and the presence of transnational behavior among Brazilians residing in MA and sending money to their country;

  5. METHODOLOGY

  6. According to the Census PUMS 2000, the total number of Brazilian-born adult (25+) immigrants in Massachusetts is 24,056, representing 15.9% of the total of Brazilians in the U.S., second only to Florida (21.1%); • A sample of 250 subjects (1/1000) is representative of the population with a confidence interval of 6.17% at a confidence level of 95%. Inferences drawn from survey questions specifically directed to remitters should be limited to Brazilian remitters in MA; • However, according to the American Development Bank – MIF, the percentage of immigrants who send money from MA is 70% so that the inference based on remitters cover a large part of all adult Brazilians;

  7. The routes for the field work were designed around remittance agencies that send money to Brazil in the cities and areas with the greater Brazilian population; • The subjects were selected randomly and intercepted at remittance agencies, to ensure that they were active senders; • A staff of 5 Portuguese speaking interviewers was provided by TransComm and trained in administering the surveys by Silvestre HMR&S who also tabulated the results;

  8. Unless otherwise indicated, all results are statistically significant at a probability level of .0001; • The survey included some questions from the 2003 and 2006 surveys directed by Manuel Orozco of the Inter-American Dialogue in order to compare Brazilians with immigrant from other nationalities.

  9. City Chicago DC-Alexandria Miami-F. Lauderdale Nationality NY-NJ Los Angeles Total Mexico 100 300 200 600 Dominican Rep. 300 300 Jamaica 200 100 300 El Salvador 100 100 200 400 Guatemala 100 100 Bolivia 200 200 Nicaragua 100 100 Total 700 500 200 400 200 2000 2006 Survey – Comparison Sample

  10. 2003 Survey – Comparison Sample City Nationality New York Los Angeles Miami Total Colombia 100 100 Cuba 175 175 Ecuador 100 100 El Salvador 100 110 210 Guatemala 109 109 236 Guyana 236 Honduras 75 75 México 100 182 282 Nicaragua 150 150 Dominican Republic 150 150 Total 686 401 500 1587

  11. DEMOGRAPHICS OF BRAZILIAN REMITTERS

  12. The age of Brazilian remitters (35.63) is close to the average (34.38) but statistically higher: Average Age by Nationality AVERAGE = 34.38 45.00 41.14 36.85 40.00 35.96 35.63 35.19 34.36 33.45 31.56 35.00 30.00 25.00 20.00 15.00 10.00 5.00 0.00 Brazil Bolivia Mexico Jamaica Nicaragua Guatemala El Salvador Dominican Rep.

  13. Brazilians are the second nationality in the proportion of male remitters (66.4%) while this proportion is reversed for Salvadoran 63.8% female: Gender by Country of Origin 66.4% 70.0 60.0 50.0 40.0 Male 30.0 Female 20.0 10.0 0.0 Brazil Bolivia Mexico Jamaica Nicaragua Dominican Rep. Guatemala El Salvador

  14. Although the general level of education among Brazilians is high school, they rank third in College degrees: Education by Nationality 60.0 50.0 40.0 30.0 20.0 10.0 0.0 Nicaragua Jamaica Brazil Dominican Rep. Bolivia Mexico El Salvador Guatemala College degree Some college High School Elementary Not elementary

  15. While the typical education level for Brazilian males is high school (36.75%), one out of four females (23.81%) has a college degree: Education by Gender 40.00% 35.00% 30.00% 25.00% 20.00% Male Female 15.00% 10.00% 5.00% 0.00% College Some College High School Elementary Did not finish degree School Elementary

  16. 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% • Brazilian remitters have the greater proportion of higher incomes (32.4%) and the lower proportion of lesser income (1.6%). One out of three Brazilians has higher income than other L.A. and Caribbean immigrants: Income by Nationality Brazil Bolivia Nicaragua Jamaica Guatemala Dominican Rep. Mexico El Salvador Less than 10,000 10,000 to 15,000 15,001 to 20,000 20,001 to 25,000 25,001 to 30,000 30,001 to 35,000 Over 35,000

  17. One out of every three Brazilians in MA, regardless of their educational level, has an income of over $35,000; except those with some college education, whose majority earns between $20K to $25K: Income by Education 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Did not finish College degree Some college High School Elementary School Elementary Less than $10,000 $10,000 to $15,000 $15,001 to $20,000 $20,001 to $25,000 $25,001 to $30,000 $30,001 to $35,000 More than $35,000

  18. Compared to other L.A. and Caribbean immigrant communities, Brazilians have the lowest proportion of U.S. citizenship (3.2%): U.S. Citizenship by Nationality 56% 60.00% 50.00% 43% 40.00% 30.00% 17.3% 16% 20.00% 14% 12.8% 12% 10.00% 3.2% 0.00% Brazil Bolivia Mexico Jamaica Nicaragua Dominican Rep. Guatemala El Salvador

  19. Most Brazilians who are U.S. citizens have lived in the country over fifteen years (1.21%) or between six to eight years (0.81%): Years in US / Citizenship No Yes Total Less than a year 4.03% 4.03% Between one and three years 40.73% 40.73% Between four and five years 23.79% 0.40% 24.19% Six to eight years 20.56% 0.81% 21.37% Nine to ten years 1.21% 0.40% 1.61% Eleven to fifteen years 3.23% 0.40% 3.63% Over fifteen years 2.42% 1.21% 3.63% NR 0.81% 0.81% Total 96.77% 3.23% 100.00% Largest 2nd Largest 3rd Largest

  20. The majority of Brazilians who are U.S. citizen (37.5%) have been living in the U.S. for over 15 years. One out of four (25%) have been living in the U.S. from 6 to 8 years: Citizenship by years in US 37.5% 40.00 35.00 30.00 25% 25.00 20.00 12.5% 12.5% 12.5% 15.00 10.00 5.00 0.00 Between four Six to eight Nine to ten Eleven to fifteen Over fifteen and five years years years years years

  21. As most immigrants, the majority of Brazilian immigrants (85.6%) has been living in the U.S. between 1 and 8 years: Brazil Honduras Colombia Cuba Nicaragua Guatemala Mexico El Salvador Guyana Ecuador Dom. Republic Years in US Less than 1 4.0% 6.7% 8.0% 4.0% 4.0% 8.3% 6.7% 0.5% 0.8% 3.0% 2.0% 1 to 3 40.4% 37.3% 32.0% 27.4% 26.7% 24.8% 21.6% 16.2% 13.1% 12.0% 4.7% 4 to 5 24.0% 17.3% 31.0% 22.9% 31.3% 24.8% 23.4% 28.1% 14.8% 20.0% 13.3% 6 to 8 21.2% 18.7% 15.0% 17.7% 12.7% 20.2% 14.2% 17.6% 30.9% 31.0% 18.0% 9 to 10 1.6% 9.3% 7.0% 16.0% 10.7% 4.6% 14.5% 11.9% 14.4% 28.0% 26.7% 11 to 15 3.6% 4.0% 3.0% 3.4% 4.7% 1.8% 7.1% 8.6% 8.1% 4.0% 14.7% Over 15 3.6% 6.7% 4.0% 8.0% 10.0% 12.8% 12.4% 15.2% 11.0% 2.0% 20.0% Largest 2nd Largest 3rd Largest

  22. The majority of Brazilians (85.6%) are employed. 12.4% of them own a business: Employment 85.6% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 12.4% 20.0% 10.0% 0.8% 0.4% 0.4% 0.4% 0.0% Student Employed Housewife Unemployed Business owner Freelance worker

  23. College education is found only among business owners (50%), students and housewives. These different education levels do not affect incomes which is over $35k for almost all levels: 5 4 Education 3 2 1 Employed Unemployed Freelance worker Student Business owner Housewife Occupation

  24. The typical Brazilian household is composed of 3 to 4 people mostly (82%)adults over 21 :

  25. Almost half (44.4%) of Brazilian remitters have been in the U.S. less than 3 years. The other half (45.2%) have lived in the country between 4 to 8 years: Years in the U.S. 45 40.4% 40 35 30 24% 25 21.2% 20 15 10 4% 3.6% 3.6% 1.6% 5 0 Less than 1 1 - 3 4 - 5 6 - 8 9 - 10 11 - 15 Over 15

  26. Most Brazilians are renters (88%), with only 10.8% of owning houses. The median income for homeowners (over $35,000) is higher than that of renters ($31,000 to $35,000): House Ownership by Income 70.00% 60.00% 50.00% 40.00% Own house 30.00% Rent 20.00% 10.00% 0.00% Less than 10,000 to 15,001 to 20,001 to 25,001 to 30,001 to Over 10,000 15,000 20,000 25,000 30,000 35,000 35,000

  27. FINANCIAL BEHAVIOR OF BRAZILIAN REMITTERS

  28. Almost every other nationality, 50% of Brazilians send money home once a month. 33.2% remit twice a month, and 9.2% once every three months: Frequency of remittances by nationality 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 Nicaragua Guatemala Mexico Bolivia Brazil Dominican Jamaica El Salvador Republic Once a month Twice a month Once every three months Once every six months Once a year Other

  29. Cities from Minas Gerais are the most important receiving cities in Brazil: Beneficiary Cities 7.6% 8 7.2% 7 6% 5.6% 6 5.2% 4.8% 5 3.6% 4 3.2% 2.8% 2.8% 3 2.4% 2 1 0 Jauru Vitoria Curitiba Ipatinga Sobralia Criciuma Sao Paulo Rio de Janeiro Belo Horizonte Conselheiro Pena Governador Valadares

  30. Minas Gerais, Espirito Santo, and Sao Paulo are Brazil’s top receiving states: Beneficiary States 60 51.6% 50 40 30 20 9.6% 6.4% 6% 10 5.2% 4.4% 3.6% 3.6% 2.4% 0 Goias Parana Sao Paulo Pernambuco Mato Grosso Minas Gerais Espirito Santo Rio de Janeiro Santa Catarina

  31. Although the mean of the most recent transaction is $747, the mode is $500 with a distribution tilted to the left:

  32. Even correcting for outliers, monthly remittances for Brazilians ($875) are much higher than the average for other L.A. communities: Monthly Remittance by Nationality $875 $900 $800 $700 $600 ABOVE AVERAGE $500 $398 AVERAGE = $294 $400 $331 $278 $274 $300 BELOW AVERAGE $218 $192 $185 $188 $177 $200 $113 $100 $- Cuba Brazil México Guyana Ecuador Colombia Honduras Nicaragua Guatemala El Salvador Dominican R. OBS: Monthly amounts are high even when corrected for gender, education, annual income and years in the U.S..

  33. Although the average fee for remittances is $9.28, the distribution is tilted to the left with a median around $10:

  34. Compared to the 2006 sample, Brazilians display a very different behavior with regard to preferred agency. Braz Transfers is their first choice, with Western Union in second and Chang Express in third: Preferred Agency BRAZIL MEXICO DOMINICAN R. JAMAICA EL SALVADOR GUATEMALA BOLIVIA NICARAGUA Braz Transfers 33.20% Western Union 20.08% 33.67% 23.33% 45.50% 18.75% 30.00% 14.50% 15.00% Chang Express 13.60% Uno Transfer 13.20% Money Gram 6.80% 3.00% 12.33% 36.00% 21.25% 3.00% 1.00% 2.00% Global 3.60% Mexico Express 19.00% Banco Agrícola 21.50% 7.00% Pronto Envíos 3.50% 18.00% 0.50% 13.00% Ria Envía 3.50% 3.00% 0.50% 5.00% 11.00% 2.00% 8.00% La Nacional 36.50% Dolex 6.67% 2.33% 1.00% 3.00% 8.00% Largest 2nd Largest 3rd Largest

  35. The majority of Brazilians are very satisfied (41.6%) or satisfied (51.2%) with their remittance agencies: Level of Satisfaction with Company

  36. Compared to the 2003 sample, the majority of Brazilians (75%), as every other L.A. and Caribbean immigrants, do not use services other than remittances. 11.6% of them use money orders while 3.6% use check cashing: Guatemala Honduras México El Salvador Dominican R. Brazil Guyana Ecuador Nicaragua Cuba Colombia Other services Money order 11.6% 1.3% 17.1% 9.8% 5.5% Check cashing 3.6% 0.7% Bill payment 1.2% Buy airplane tickets 0.4% Buy different things 0.4% Payday loan 0.4% Checking account 0.4% Other 7.0% 68.1% 51.3% 42.6% 39.6% 37.6% 32.3% 16.2% 30.0% 15.8% 6.9% None 75% 31.9% 48.7% 57.4% 60.4% 62.4% 66.5% 66.7% 70.0% 73.7% 87.6% OBS: Other services and products made use by the other L.A. and Caribbean communities include phone cards, phone booths and cargo services. Largest 2nd Largest 3rd Largest

  37. While Brazilians choose an agency based on of the accessibility or convenience of service, other L.A. and Caribbean immigrants look for quality of service and company reputation: Reasons to prefer agency Brazil México Dominican R. Jamaica El Salvador Guatemala Close/Convenient/More agencies 27.3% 30.8% 16.0% 7.5% 12.8% 34.0% Costumer service/Friendly staff/Language 22.2% 0.8% 8.3% 13.5% 14.0% 5.0% Accessible/Easy to use/Services/Schedules 20.1% 14.8% 5.0% 11.0% 8.3% 11.0% Prestige/Well know/Recommended 16.1% 8.5% 2.0% 2.5% 3.8% 4.0% Price/Exchange rate/Free/Discounts 14.0% 10.2% 13.7% 16.0% 9.3% 27.0% Responsible/Secure/Trustworthy 30.2% 32.3% 23.5% 53.3% 32.0% Fast/Punctual/Efficient/No problems 25.7% 28.0% 28.5% 20.3% 19.0% OBS: 2003 sample comparison. 1st Choice 2nd Choice 3rd Choice

  38. Consistently, the majority (63.6%) of the agencies preferred by Brazilians are at walking distance from home, although one out of three (32%) are at a less than 30 minutes drive: Distance of Transfer Company from Home 63.6% 70.0% 60.0% 50.0% 40.0% 32.0% 30.0% 20.0% 4.0% 10.0% 0.4% 0.0% Walking distance Less than 30 Between 30 and 60 Don't know minutes drive minutes

  39. Mother/father are the main beneficiaries of remittances for every country, except Guyana. Second place beneficiaries for Brazilians are husband/wife. For Brazilians, as for Nicaraguans, Cubans and Dominicans, children come in third: Brazil Guatemala México Colombia Nicaragua Ecuador El Salvador Cuba Dominican R. Honduras Guyana Beneficiary Mother/Father 36.3% 49.5% 48.2% 46.0% 43.3% 39.0% 36.7% 36.6% 36.0% 30.7% 11.4% Husband/Wife 21.4% 22.9% 24.5% 14.0% 15.3% 9.0% 24.8% 7.4% 13.3% 26.7% 8.5% Your Children 19.3% 5.5% 8.2% 20.0% 15.3% 36.0% 11.9% 16.0% 14.7% 13.3% 16.9% Your Siblings 14.6% 14.7% 13.1% 9.0% 18.7% 14.0% 14.8% 24.6% 19.3% 18.7% 6.8% Other relatives 3.9% 6.4% 3.9% 3.0% 2.7% 1.0% 5.7% 8.0% 8.7% 4.0% 18.2% Friends 2.1% 0.5% 2.7% 1.3% 1.3% Business Partner 2.1% Other 0.3% Grandparents 0.9% 2.1% 8.0% 4.7% 1.0% 5.2% 7.4% 5.3% 5.3% 1.3% OBS: 2003 sample comparison. Largest 2nd Largest 3rd Largest

  40. Like in many other L.A. communities, Food (24.6%) and Clothing (17.3%) are the main articles bought with remittances in Brazil. Medical expenses come in third place for Brazilians while housing is the third choice for every other communities: Nationality Uses Brazil Nicaragua Cuba Guatemala El Salvador Colombia Honduras Ecuador México Dominican R. Guyana Food 24.60% 96.7% 96.6% 89.9% 89.5% 89.0% 88.0% 87.0% 86.9% 81.3% 72.0% Clothing 17.30% 68.7% 44.6% 69.7% 55.7% 59.0% 56.0% 29.0% 49.3% 25.3% 61.9% Medical 16.90% 10.7% 3.4% 3.7% 3.3% 8.0% 1.3% 4.0% 2.8% 6.7% Housing 15.90% 34.0% 16.6% 56.0% 46.2% 29.0% 32.0% 11.0% 37.2% 32.7% 33.1% Education 11.60% 29.3% 11.4% 39.4% 36.7% 31.0% 28.0% 20.0% 36.9% 21.3% 26.7% Don't Know 7.30% 2.7% 3.4% 11.0% 8.1% 6.0% 2.7% 8.0% 12.4% 8.0% 16.1% Business 5.30% 2.7% 0.6% 1.8% 2.4% 4.0% 1.0% 3.5% 4.0% 8.5% Savings 2.00% 0.6% 1.0% 0.7% 1.3% Other 8.00% 0.7% 1.1% 2.8% 4.8% 3.0% 8.0% 5.0% 8.7% 8.5% OBS: 2003 sample comparison. Largest 2nd Largest 3rd Largest

  41. Years sending money to Brazil, has a perfect correlation with years living in the U.S., that is, the longer Brazilians live in the U.S. the longer they send money to Brazil. The same general tendency holds true for all other groups included in the 2003 sample:

  42. Unlike every other L.A. and Caribbean immigrants, 92.4% of Brazilians prefer sending money by making a deposit into the beneficiary’s bank account. Only 6% prefers sending cash: Preferred Method of Transfer Funds

  43. Brazilians, along with Salvadorans and Nicaraguans, have an average number of people (70.4%) with bank accounts in the U.S.. Mexicans and Guatemalans have below average numbers while Jamaicans, Bolivians and Dominicans have above average: Bank Account in the U.S.by Nationality Above Average 90.0 84.5 75.5 75.0 80.0 70.4 Average = 61.1% 70.0 58.3 60.0 53.0 Below Average 50.0 39.5 40.0 33.0 30.0 20.0 10.0 0.0 Brazil Bolivia Mexico Jamaica Nicaragua Guatemala El Salvador Dominican R.

  44. Statistical analysis shows that Education (p < .002) and Years in the U.S. (p < .004) are the most important factors in determining bank account ownership for Brazilians residing in the U.S.: Coefficients* Standardized Non Standardized Coefficients Coefficients t Model Sig. B Std. Error Beta 1 (Constant) .849 .177 4.788 .000 Gender - .073 .068 - .076 - 1.085 .279 Education - .079 .025 - .223 - 3.171 .002 Annual personal .001 .019 .002 .030 .976 income range How long have you lived in the United .071 .024 .206 2.932 .004 States? *Dependent Variable = Do you have a bank account in the United States?

  45. Bank of America is the first bank choice (44.8%) for Brazilians as for many other L.A. and Caribbean immigrants. Nevertheless, the second and third choices for Brazilians, Citizens Bank (17.6%) and Sovereign Bank (4.4%), are not mentioned by any other nationality: Nationality Bank in US BRAZIL MEXICO Dominican R. JAMAICA EL SALVADOR GUATEMALA BOLIVIA NICARAGUA Bank of America 44.80% 8.50% 10.67% 9.50% 12.00% 8.00% 26.50% 13.00% Citizens Bank 17.60% Sovereign Bank 4.40% Middlesex Bank 1.60% Citibank 0.40% 5.50% 12.67% 18.00% 4.25% 3.00% 3.00% Luso American Credit Union 0.40% Chase 8.50% 18.00% 20.00% 3.75% Washington Mutual 4.17% 7.67% 10.00% 3.75% 13.00% 20.00% 1st Choice 2nd Choice 3rd Choice

  46. As for almost all other L.A. and Caribbean immigrants, the main reason for Brazilians not to have a bank account is the lack of identification papers (40.7%), which is related to Accessibility and Convenience. The second reason (36%) is subjective – “I don’t need a bank account.” But the third reason is also associated with Accessibility: “The process is very complicated:” Why not bank Brazil México Dominican R. Jamaica Colombia El Salvador Guatemala I don't have identification papers 40.70% 34.50% 4.00% 2.00% 26.00% 30.75% 41.00% I don't need a bank account 36.00% 21.17% 12.00% 10.50% 24.00% 12.50% 27.00% The process is very complicated 11.60% 9.17% 4.33% 1.00% 8.00% 9.50% 8.00% I don't speak English 8.10% 2.00% I don't trust banks 2.30% 5.83% 6.33% 2.50% 1.00% 2.75% 6.00% There is no bank near 1.20% 0.67% 0.33% 1.00% 1st Reason 2nd Reason 3rd Reason

  47. When arranged by nationality according to both credit and debit card ownership, Brazilians stand in the middle with one third of them (35.6%) holding a debit card and another third (30.8%) holding neither of them: Credit/Debit Card by Nationality 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Brazil Bolivia Mexico Jamaica Nicaragua Guatemala El Salvador Dominican R. Both Credit Debit None of them

  48. As with the monthly remittances, Brazilians make above average monthly payments to credit cards ($744.74). Nicaraguans, Mexicans and Salvadorans are between the limits of the average ($325.43): Monthly Payments to Credit Card by Nationality $800.00 $714.74 $700.00 $600.00 $500.00 $413.21 $400.00 $341.00 $317.65 $301.51 $265.45 $300.00 $217.76 $212.52 $200.00 $100.00 $0.00 Brazil Bolivia Mexico Jamaica Nicaragua Guatemala El Salvador Dominican R.

  49. The majority of Brazilians (86.6%), as with other L.A. and Caribbean immigrants, do not have economic obligations in the U.S.. Only 6.3% of them have home loans payments and only 3.9% have other loan payments: Obligations in US Brazil Guyana Cuba Colombia Nicaragua Honduras Ecuador El Salvador Dominican R. Guatemala México Does not have 86.60% 40.3% 75.4% 82.0% 84.7% 89.3% 96.0% 95.2% 88.7% 98.2% 97.5% House payment loans 6.30% 34.3% 18.9% 13.0% 12.0% 6.7% 3.0% 2.4% 2.0% 1.8% 1.1% Loans for other debts 3.90% 26.7% 1.0% 1.3% 1.0% 1.3% 0.7% Business loans 1.60% 5.5% 2.3% 1.3% 2.0% Education loans 1.60% 10.2% 4.6% 6.0% 2.7% 5.3% 1.0% 1.4% 6.0% 0.7% Largest 2nd Largest 3rd Largest

  50. Two out of three (66.8%) Brazilians would be interested in contributing a small portion of their remittances to support a “development fund” to invest in their own community: Percentage of Brazilians Interested in Contributing to a Dev. Fund

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