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New evidence on the role of remittances on healthcare expenditures by Mexican households

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  • Catalina Amuedo-Dorantes

    ()

  • Susan Pozo

    ()

Abstract

Using Mexico's 2002 wave of the Encuesta Nacional de Ingresos y Gastos de los Hogares (ENIGH), we find that international remittances raise health care expenditures. Approximately 6 pesos of every 100 peso increment in remittance income are spent on health. The sensitivity of health care expenditures to variations in the level of international remittances is almost three times greater than its responsiveness to changes in other sources of household income. Furthermore, health care expenditures are less responsive to remittance income among lower-income households. Since the lower responsiveness may be partially due to participation of lower-income households in public programs like PROGRESA (now called Oportunidades), we also analyze the impact of remittances by health care coverage. As expected, we find that households with some kind of health care coverage – either through their jobs or via participation in PROGRESA – spend less of remittance income increments on health care than households lacking any health care coverage. Hence, remittances may help equalize health care expenditures across households with and without health care coverage.

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File URL: http://hdl.handle.net/10.1007/s11150-009-9080-7
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Bibliographic Info

Article provided by Springer in its journal Review of Economics of the Household.

Volume (Year): 9 (2011)
Issue (Month): 1 (March)
Pages: 69-98

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Handle: RePEc:kap:reveho:v:9:y:2011:i:1:p:69-98

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Web page: http://www.springerlink.com/link.asp?id=109451

Related research

Keywords: Remittances; Household expenditures; Healthcare; Mexico; F24; I1;

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References

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Citations

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Cited by:
  1. Theodore Gerber & Karine Torosyan, 2013. "Remittances in the Republic of Georgia: Correlates, Economic Impact, and Social Capital Formation," Demography, Springer, vol. 50(4), pages 1279-1301, August.
  2. Ibrahim Sirkeci & Jeffrey H. Cohen & Dilip Ratha, 2012. "Migration and Remittances during the Global Financial Crisis and Beyond," World Bank Publications, The World Bank, number 13092, July.
  3. Matthieu CLEMENT (GREThA, CNRS, UMR 5113), 2011. "Remittances and household expenditure patterns in Tajikistan: A propensity score matching analysis," Cahiers du GREThA 2011-09, Groupe de Recherche en Economie Théorique et Appliquée.
  4. Ambrosius, Christian & Cuecuecha, Alfredo, 2013. "Are Remittances a Substitute for Credit? Carrying the Financial Burden of Health Shocks in National and Transnational Households," World Development, Elsevier, vol. 46(C), pages 143-152.
  5. Junaid Ahmed & Mazhar Mughal, 2014. "How do consumption patterns of foreign and domestic remittance recipients and non recipients compare? Evidence from Pakistan," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 160, Courant Research Centre PEG.
  6. Mohapatra, Sanket & Ratha, Dilip, 2010. "Forecasting migrant remittances during the global financial crisis," Policy Research Working Paper Series 5512, The World Bank.
  7. Matthieu Delpierre, 2012. "The impact of liquidity constraints and imperfect commitment on migration decisions of offspring of rural households," Review of Economics of the Household, Springer, vol. 10(1), pages 153-170, March.
  8. Ambrosius, Christian, 2012. "Are remittances a substitute for credit? Carrying the financial burden of health shocks in national and transnational households," Discussion Papers 2012/9, Free University Berlin, School of Business & Economics.

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