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New Evidence on the Role of Remittances on Health Care Expenditures by Mexican Households

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  • Amuedo-Dorantes, Catalina

    ()
    (San Diego State University)

  • Pozo, Susan

    ()
    (Western Michigan University)

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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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4617.

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Length: 45 pages
Date of creation: Dec 2009
Date of revision:
Handle: RePEc:iza:izadps:dp4617

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Keywords: household expenditures; health care; remittances; Mexico;

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References

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  1. Ernesto López-Córdova, 2005. "Globalization, Migration, and Development: The Role of Mexican Migrant Remittances," JOURNAL OF LACEA ECONOMIA, LACEA - LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION.
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Cited by:
  1. Matthieu Delpierre, 2010. "The Impact of Liquidity Constraints and Imperfect Commitment on Migration Decisions of Offspring of Rural Households," Working Papers 1011, University of Namur, Department of Economics.
  2. Clemént, Matthieu, 2011. "Remittances and Household Expenditure Patterns in Tajikistan: A Propensity Score Matching Analysis," Asian Development Review, Asian Development Bank, vol. 28(2), pages 58-87.
  3. 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.
  4. Mohapatra, Sanket & Ratha, Dilip, 2010. "Forecasting migrant remittances during the global financial crisis," Policy Research Working Paper Series 5512, The World Bank.
  5. 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.
  6. 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, October.
  7. 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.

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