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Enhancing the Impact of Remittances on Development: New Evidence from Experiments among Migrants from El Salvador

In: Financing the Family

Author

Listed:
  • Gabriela Inchauste

    (World Bank)

  • Ernesto Stein

    (Inter-American Development Bank)

Abstract

Remittances bring substantial benefits to recipient households in the form of higher consumption levels and lower poverty rates. They are used to increase investments in human capital and small enterprises, and their countercyclical response to shocks in migrant home countries helps households achieve smoother levels of consumption over time. Much of the evidence for these statements is correlational rather than causal, but a growing body of research that exploits natural experiments (in which remittances vary exogenously because of some external shock) has found that remittances do have a positive causal impact on many indicators of household well-being.

Suggested Citation

  • Gabriela Inchauste & Ernesto Stein, 2013. "Enhancing the Impact of Remittances on Development: New Evidence from Experiments among Migrants from El Salvador," Palgrave Macmillan Books, in: Gabriela Inchauste & Ernesto Stein (ed.), Financing the Family, chapter 3, pages 47-70, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-33307-0_3
    DOI: 10.1057/9781137333070_3
    as

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