A first-of-its-kind study on Western Union sheds new light on the positive impact of cross-border money transfer broadly and of its services in particular. For example, each Western Union Agent location in the Philippines handles transactions that infuse enough funds into the local economy to create 85 non-Western Union jobs.
The University of Colorado Boulder Leeds School of Business, which includes the well-regarded Business Research Division, and The Western Union Company says the report shows insight is critical to creating effective programs around this $542 billion annual global flow of funds, and to the one in seven people globally who make up the mobile workforce.
The study demonstrates that Western Union services have a positive impact on society over the long term.
Other Findings include:
1. When combined, the impact of these funds handled by Western Union Agent locations account for 722,500 jobs in the Philippines.
2. Among lower-income households, on average, WU money transfers grow nominal income by 14.5%, and welfare by 13.1%
3. WU money transfers also have price and secondary income effects that benefit middle-to-high income households that do not receive money transfers. On average, this population sees 0.4% growth in nominal income and 0.3% growth in welfare, driven by remittances.
4. Remittance recipients tend to work less, presumably to attend school or better support children or elderly relatives. This reduces the labor supply, causing upward pressure on wages of those who do not receive remittances.
The study looked at money transfers worldwide, and focused on the Philippines, one of the top three recipient nations of official remittances, to create a model that could be used to construct equivalent indicators for other countries.
For more data on Western Union access CardData®. For information and commentary on Western Union visit the searchable CardFlash® Library of more than 58,000 articles published since 1995. RAM Research® forecasts on Western Union are available exclusively through CardWeb.com.®