The Effect of Workers’ Remittances on Poverty in Mexico: A Regional Analysis

Coon, Michael (2012): The Effect of Workers’ Remittances on Poverty in Mexico: A Regional Analysis.

Abstract

This study estimates the impact of income remittances on poverty rates by estimating household income under the counter-factual scenario that migration does not occur. Estimation of the counter-factual is performed at the national level, as well as across two separate sub-national groupings of states, first according to historical migration patterns, then according to current migration intensity. Findings indicate that the ability of remittances to reduce poverty levels varies between groups, and across differing poverty thresholds. I find that remittances generally tend to reduce poverty in recipient communities. However, in some cases, I find that remittances lead to an increase in the poverty rate.

• Item Type: MPRA Paper
• Language: English
• Keywords: Remittances, Poverty, Mexico
• Subjects: F - International Economics > F2 - International Factor Movements and International Business > F24 - Remittances; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O15 - Human Resources ; Human Development ; Income Distribution ; Migration

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