Remittances and Poverty in Migrants’ Home Areas: Evidence from the Philippines
In many developing countries, remittance receipts from overseas are importantsupplements to household income. How do these remittance flows affect poverty andinequality in migrants’ home areas? To answer this question, we take advantage ofexogenous shocks to the remittance receipts of Philippine households. Filipino migrantswork in a variety of foreign countries, and experienced sudden changes in exchange ratesdue to the 1997 Asian financial crisis. Appreciation of a migrant’s currency against thePhilippine peso leads to increases in household remittance receipts, and reductions inpoverty in migrants’ origin households. We find evidence of spillovers to householdswithout migrant members, focusing on cross-regional variation in the mean exchange rateshock experienced by the region’s migrants. In regions with more favorable meanexchange rate shocks, aggregate poverty rates decline even in households withoutmigrant members. However, we find no strong evidence of effects on region-levelinequality.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Rodriguez, Edgard R, 1998. "International Migration and Income Distribution in the Philippines," Economic Development and Cultural Change, University of Chicago Press, vol. 46(2), pages 329-350, January.
- Rodrik, Dani, 2002.
CEPR Discussion Papers
3524, C.E.P.R. Discussion Papers.
- Rodrik, Dani, 2002. "Feasible Globalizations," Working Paper Series rwp02-029, Harvard University, John F. Kennedy School of Government.
- Dani Rodrik, 2002. "Feasible Globalizations," NBER Working Papers 9129, National Bureau of Economic Research, Inc.
- HwaJung Choi, 2007. "Are Remittances Insurance? Evidence from Rainfall Shocks in the Philippines," World Bank Economic Review, World Bank Group, vol. 21(2), pages 219-248, May.
- Dean Yang & HwaJung Choi, 2005. "Are Remittances Insurance? Evidence from Rainfall Shocks in the Philippines," Working Papers 535, Research Seminar in International Economics, University of Michigan.
- Dean Yang, 2004. "International Migration, Human Capital, and Entrepreneurship: Evidence from Philippine Migrants’ Exchange Rate Shocks," Working Papers 531, Research Seminar in International Economics, University of Michigan.
- Yang, Dean, 2005. "International migration, human capital, and entrepreneurship : evidence from Philippine migrants'exchange rate shocks," Policy Research Working Paper Series 3578, The World Bank.
- Adams, Richard H. Jr., 2004. "Remittances and poverty in Guatemala," Policy Research Working Paper Series 3418, The World Bank.
- Adams, Richard H, Jr, 1989. "Worker Remittances and Inequality in Rural Egypt," Economic Development and Cultural Change, University of Chicago Press, vol. 38(1), pages 45-71, October.
- Stark, Oded & Taylor, J Edward & Yitzhaki, Shlomo, 1986. "Remittances and Inequality," Economic Journal, Royal Economic Society, vol. 96(383), pages 722-740, September.
- Barham, Bradford & Boucher, Stephen, 1998. "Migration, remittances, and inequality: estimating the net effects of migration on income distribution," Journal of Development Economics, Elsevier, vol. 55(2), pages 307-331, April.
- Taylor, J. Edward, 1992. "Remittances and inequality reconsidered: Direct, indirect, and intertemporal effects," Journal of Policy Modeling, Elsevier, vol. 14(2), pages 187-208, April.
- Taylor, J. Edward, 1991. "Remittances And Inequality Reconsidered; Direct, Indirect, And Intertemporal Effects," Working Papers 225864, University of California, Davis, Department of Agricultural and Resource Economics.
- Borjas, George J., 1999. "The economic analysis of immigration," Handbook of Labor Economics,in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 28, pages 1697-1760 Elsevier. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:udc:wpaper:wp257. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mohit Karnani)
If references are entirely missing, you can add them using this form.