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The Effect of Workers’ Remittances on Poverty in Mexico: A Regional Analysis

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  • Coon, Michael

Abstract

This study estimates the impact of income remittances on poverty rates by estimating household income under the counter-factual scenario that migration does not occur. Estimation of the counter-factual is performed at the national level, as well as across two separate sub-national groupings of states, first according to historical migration patterns, then according to current migration intensity. Findings indicate that the ability of remittances to reduce poverty levels varies between groups, and across differing poverty thresholds. I find that remittances generally tend to reduce poverty in recipient communities. However, in some cases, I find that remittances lead to an increase in the poverty rate.

Suggested Citation

  • Coon, Michael, 2012. "The Effect of Workers’ Remittances on Poverty in Mexico: A Regional Analysis," MPRA Paper 61388, University Library of Munich, Germany, revised 06 Oct 2014.
    • Handle: RePEc:pra:mprapa:61388
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    References listed on IDEAS

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    More about this item

    Keywords

    Remittances; Poverty; Mexico;
    All these keywords.

    JEL classification:

    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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