Abstract

CRUZ-SALAS, Genaro; LLAMAS-HUITRON, Ignacio  and  MOLINA-VELASCO, Nallely. Impacts of International Remittances and Government Transfers on Household Spending. Recent Evidence in Mexico. Econ: teor. práct [online]. 2023, n.58, pp.19-48.  Epub June 26, 2023. ISSN 2448-7481.  https://doi.org/10.24275/etypuam/ne/582023/cruz.

The flow of international remittances and government transfers has increased considerably in recent years. On the one hand, such increases are explained by greater emigration and on the other, by social policies focused on serving the most vulnerable populations. Using data from National Surveys of Household Income and Expenditures from 2016 and 2018, propensity score matching models are estimated to determine changes in the spending patterns of two groups of households: remittance recipients and government transfer recipients. The results indicate that households receiving remittances spend more on productive investments and human capital, and those receiving government transfers spend more on consumption. The findings are relevant as they highlight the need to formulate policies that promote productive investments in the most disadvantaged households in rural areas and southern Mexico.

Keywords : International remittances; government transfers; household expense; Mexico; treatment effects.

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