TY - GEN AU - Brito, Steve AU - Corbacho, Ana AU - Osorio Rivas, Rene TI - Remittances and the Impact on Crime in Mexico PY - 2014 Y1 - 2014/05/28 DO - 10.18235/0011632 AB - This working paper studies the effect of remittances from the United States on crime rates in Mexico. The topic is examined using municipal-level data on the percent of household receiving remittances and homicides per 100,000 inhabitants. Remittances are found to be associated with a decrease in homicide rates. Every 1 percent increase in the number of households receiving remittances reduces the homicide rate by 0.05 percent. Other types of crimes are analyzed, revealing a reduction in street robbery of 0.19 percent for every 1 percent increase in households receiving remittances. This decrease is also observed using a state-level panel in another specification. The mechanisms of transmission could be related to an income effect or an incapacitation effect of remittances increasing education, opening job opportunities, and/or reducing the amount of time available to engage in criminal activities. UR - https://doi.org/10.18235/0011632 ER -