Globalization, Migration and Development: The Role of Mexican Migrant Remittances

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Aug 2006
In this paper we present evidence suggesting that international migrant remittances generally lead to improved developmental outcomes. Using a cross-section of Mexican municipalities in the year 2000, we show that increases in the fraction of households receiving international remittances are generally correlated with better schooling and health outcomes and with reductions in some dimensions of poverty. Our results take into account the likely endogeneity between migration, remittances and developmental outcome variables, and they suggest that measures to facilitate remittance flows are desirable.