How Do Migration and Remittances Affect Inequality? A Case Study of Mexico
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Summary:
The poverty-reducing effects of remittances have been well-documented, however, their effects on inequality are less clear. This paper examines the impact of remittances on inequality in Mexico using household-level information on the receiving side. It hopes to speak to their insurance role by examining how remittances are affected by domestic and external crises: the 1994 Mexican Peso crisis and the Global Financial Crisis. We find that remittances lower inequality, and that they become more pro-poor over time as migration opportunities become more widespread. This also strengthens their insurance effects, mitigating some of the negative impact of shocks on the poorest.
Series:
Working Paper No. 2018/136
Subject:
Balance of payments Global financial crisis of 2008-2009 Income Income distribution Income inequality Migration National accounts Population and demographics Remittances
English
Publication Date:
June 14, 2018
ISBN/ISSN:
9781484361634/1018-5941
Stock No:
WPIEA2018136
Pages:
21
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