Remittances and the Impact on Crime in Mexico

Steve Brito, Ana Corbacho and Rene Osorio Rivas

No 6482, IDB Publications (Working Papers) from Inter-American Development Bank

Abstract: 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.

Keywords: Crime; Mexico; Remittances; Migration; Homicides (search for similar items in EconPapers)
JEL-codes: J15 J22 O12 O54 (search for similar items in EconPapers)
Date: 2014-05
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:idb:brikps:6482

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