How Do Migration and Remittances Affect Inequality? A Case Study of Mexico
IMF Working Papers, June 14, 2018
Source details
- Canonical URL
- How Do Migration and Remittances Affect Inequality? A Case Study of Mexico
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Bibliographic details
- Authors: Zsoka Koczan, Franz Loyola
- Published: June 14, 2018
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484361634.001
Summary and research question
- Examines the impact of remittances on inequality in Mexico using household-level information on the receiving side.
- Investigates the insurance role of remittances by analyzing their behavior during two crises: the 1994 Mexican Peso crisis and the Global Financial Crisis.
- Core finding: remittances lower inequality and become more pro-poor over time as migration opportunities become more widespread, strengthening their insurance effects and mitigating some of the negative impact of shocks on the poorest.
Empirical approach and scope
- Data: household-level information on remittance-receiving households in Mexico (receiving side).
- Crisis cases analyzed:
- 1994 Mexican Peso crisis
- Global Financial Crisis
- Research context: IMF Working Paper describing research in progress.
Key findings
- Remittances lower inequality.
- Remittances become more pro-poor over time as migration opportunities become more widespread.
- Increased pro-poor orientation of remittances strengthens their insurance effects, mitigating some negative impacts of shocks on the poorest.
Subjects and keywords (as listed)
- Subjects: Balance of payments; Global financial crisis of 2008-2009; Income; Income distribution; Income inequality; Migration; National accounts; Population and demographics; Remittances.
- Keywords: center; decile point; determinants of remittance; Gini coefficient; Global; Income; Income distribution; income distribution migrant; Income inequality; inequality; Migration; migration flow; migration opportunity; No. of child; No. of elderly; remittance; remittance receipt; remittance-receiving household; remittances; remittances relative; WP.
Content in this bundle
- How Do Migration and Remittances Affect Inequality? A Case Study of Mexico, WP/18/136, June 2018