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

Author: Zsoka Koczan; Franz Loyola
Publisher: Washington, D.C. : International Monetary Fund, 2018.
Series: IMF Working Papers; Working Paper, no. 18/136.
Edition/Format:   eBook : Document : English
Summary:
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  Read more...
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Genre/Form: Electronic books
Additional Physical Format: Print version:
Koczan, Zsoka.
How Do Migration and Remittances Affect Inequality? a Case Study of Mexico.
Washington, D.C. : International Monetary Fund, ©2018
Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Zsoka Koczan; Franz Loyola
ISBN: 9781484363461 1484363469 1484361636 9781484361634
OCLC Number: 1046623027
Description: 1 online resource (22 pages)
Contents: Cover; Contents; Abstract; I. Introduction; II. Literature Review; III. Data; IV. Migration From Mexico; V. Estimation Strategy; VI. Results; A. Who Receives Remittances?; B. Do The Determinants Of Remittances Vary Across The Income Distribution?; C. What Does This Imply For Inequality?; D. What Are The Effects Of The Crises?; VII. Conclusions; References; Figures; Figure 1. Migration and Remittances; Figure 2. Remittances before, during and after the Peso Crisis; Figure 3. Remittances before, during and after the Global Financial Crisis; Figure 4. Gini coefficients; Figure 5. Crisis Effects. TablesTable 1. Demographic Characteristics of Mexican Immigrants in the United States; Table 2. Characteristics of Remittance-Receiving and Non-Remittance-Receiving Households; Table 3. Determinants of Remittances by Decile; Before, During and After the Peso Crisis; Table 4. Determinants of Remittances by Decile; Before, During and After the Global Financial Crisis; Annex; Annex Table 1. Determinants of Remittances by Decile, Heckman Two-Step Estimator, Global Financial Crisis.
Series Title: IMF Working Papers; Working Paper, no. 18/136.

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.

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