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Remittances and the Impact on Crime in Mexico

Listed author(s):
  • Steve Brito
  • Ana Corbacho
  • Rene Osorio Rivas

This working paper studies the effect of remittances from the United States on crime rates in Mexico. The topic is examined using municipal-level data on the percent of household receiving remittances and homicides per 100,000 inhabitants. Remittances are found to be associated with a decrease in homicide rates. Every 1 percent increase in the number of households receiving remittances reduces the homicide rate by 0.05 percent. Other types of crimes are analyzed, revealing a reduction in street robbery of 0.19 percent for every 1 percent increase in households receiving remittances. This decrease is also observed using a state-level panel in another specification. The mechanisms of transmission could be related to an income effect or an incapacitation effect of remittances increasing education, opening job opportunities, and/or reducing the amount of time available to engage in criminal activities.

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File URL: http://publications.iadb.org/bitstream/handle/11319/6482/IFD%20WP%20Remittances%20and%20the%20Impact%20on%20Crime%20in%20Mexico.pdf?sequence=1
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Paper provided by Inter-American Development Bank in its series IDB Publications (Working Papers) with number 6482.

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Date of creation: May 2014
Handle: RePEc:idb:brikps:6482
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