EconPapers    
Economics at your fingertips  
 

Remittances and Income Smoothing

Catalina Amuedo-Dorantes () and Susan Pozo ()

No 5568, IZA Discussion Papers from Institute for the Study of Labor (IZA)

Abstract: Due to inadequate savings and binding borrowing constraints, income volatility can make households in developing countries particularly susceptible to economic hardship. We examine the role of remittances in either alleviating or increasing household income volatility using Mexican household level data over the 2000 through 2008 period. We correct for reverse causality and endogeneity and find that while income smoothing does not appear to be the main motive for sending remittances in a non-negligible share of households, remittances do indeed smooth household income on average. Other variables surrounding income volatility are also considered and evaluated.

Keywords: income smoothing; remittances (search for similar items in EconPapers)
JEL-codes: F22 O15 O54 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ltv and nep-mig
Date: 2011-03
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (16) Track citations by RSS feed

Published in: American Economic Review, 2011, 101 (3), 582-587

Downloads: (external link)
http://ftp.iza.org/dp5568.pdf (application/pdf)

Related works:
Journal Article: Remittances and Income Smoothing (2011) Downloads
Working Paper: Remittances and Income Smoothing (2011) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp5568

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute for the Study of Labor (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Series data maintained by Mark Fallak ().

 
Page updated 2017-11-13
Handle: RePEc:iza:izadps:dp5568