How Do Migration and Remittances Affect Inequality? A Case Study of Mexico

Zsoka Koczan and Franz Loyola

No 2018/136, IMF Working Papers from International Monetary Fund

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 as migration opportunities become more widespread. This also strengthens their insurance effects, mitigating some of the negative impact of shocks on the poorest.

Keywords: WP; center; Gini coefficient; remittance; remittance receipt; No. of elderly; Migration; remittances; inequality; migration opportunity; income distribution migrant; remittances relative; remittance-receiving household; No. of child; determinants of remittance; decile point; migration flow; Income; Income distribution; Income inequality; Global (search for similar items in EconPapers)
Pages: 21
Date: 2018-06-14
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Citations: View citations in EconPapers (5)

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Journal Article: How do migration and remittances affect inequality? A case study of Mexico (2021)
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