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How do migration and remittances affect inequality? A case study of Mexico

Zsoka Koczan and Franz Loyola

Journal of International Development, 2021, vol. 33, issue 2, 360-381

Abstract: The poverty‐reducing effects of remittances have been well documented; however, their effects on inequality are less clear. This paper examines the impact of remittances on inequality in Mexico using household‐level information on the receiving side. It hopes to speak to their insurance role by examining how remittances are affected by domestic and external crises: the 1994 Mexican peso crisis and the global financial crisis. We find that remittances lower inequality and that they become more pro‐poor over time. This also strengthens their insurance effects, mitigating some of the negative impact of shocks on the poorest.

Date: 2021
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Working Paper: How Do Migration and Remittances Affect Inequality? A Case Study of Mexico (2018) Downloads
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