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Migration and Remittances Effects on Consumption of the Poorest : the Mexican Case

Author

Listed:
  • Mora Rivera, José Jorge.

    (Instituto Tecnológico y de Estudios Superiores de Monterrey, Campus Ciudad de México)

  • Arellano-González, Jesús.

    (El Colegio de México)

Abstract

In this work we present empirical evidence to test for the impact of remittances on expenditure patterns in rural Mexican households located in poor areas. Using data from the Progresa-Oportunidades program from 1997 to 2000, we develop an econometric approach that deals with the selection mechanism affecting migration decisions, to estimate the impact that the probability of receiving remittances, internal and external, has on expenditure patterns of rural poor households. Our findings indicate that there are significant effects on some expenditure categories. Household with higher probabilities of receiving internal and external remittances are more likely to spend in expenditure categories like physical and human investments./ Este trabajo presenta evidencia empírica sobre el efecto de las remesas en los patrones de gasto de hogares rurales que viven en algunas de las zonas más pobres de México. Utilizando datos de las encuestas del programa Progresa-Oportunidades de los años 1997 al 2000, se desarrolla un modelo econométrico que considera el proceso de autoselección involucrado en el fenómeno migratorio, para estimar el impacto que tiene la probabilidad de recibir remesas, internas y externas, en los patrones de gasto de estos hogares. Los resultados señalan que existen efectos significativos en ciertas categorías de gasto. Dichos hallazgos indican que los hogares con mayor probabilidad de recibir remesas tienen mayor propensión a gastar en categorías de gasto relacionadas con la inversión física y humana.

Suggested Citation

  • Mora Rivera, José Jorge. & Arellano-González, Jesús., 2012. "Migration and Remittances Effects on Consumption of the Poorest : the Mexican Case," Panorama Económico, Escuela Superior de Economía, Instituto Politécnico Nacional, vol. 0(14), pages 121-163, primer se.
  • Handle: RePEc:ipn:panora:v:vii:y:2012:i:14:p:121-163
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    migration; remittances; consumption; mexican households./ migración; remesas; consumo; hogares mexicanos.;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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