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

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 exam...

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Bibliographic Details
Main Author: Koczan, Zsoka
Other Authors: Loyola, Franz
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2018
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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651 4 |a Mexico 
653 |a Economic & financial crises & disasters 
653 |a Global financial crisis of 2008-2009 
653 |a Population and demographics 
653 |a International Migration 
653 |a Financial Crises 
653 |a Balance of payments 
653 |a Income distribution 
653 |a Global Financial Crisis, 2008-2009 
653 |a Migration 
653 |a International finance 
653 |a Migration, immigration & emigration 
653 |a International economics 
653 |a Exports and Imports 
653 |a Aggregate Factor Income Distribution 
653 |a Remittances 
653 |a Income 
653 |a Immigrant Workers 
653 |a Emigration and immigration 
653 |a Personal Income, Wealth, and Their Distributions 
653 |a Income inequality 
653 |a Geographic Labor Mobility 
653 |a Macroeconomics 
653 |a National accounts 
653 |a Emigration and Immigration 
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520 |a 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