The potential effect of remittances on poverty and inequality
Abstract
The recent US economic crisis had as one of its consequences for Mexico a decrease in the reception of US remittances and as a result some impacts on inequality and poverty levels. This paper utilizes data from the Mexico National Rural Household Survey, together with inequality and poverty decomposition techniques, to explore the potential impacts of remittances on rural inequality and poverty if this source of income decreases. The results suggest that remittances from US have significant impacts on poverty levels while have no important effects on income distribution.
Keywords
Migration, Remittances, Inequality, Poverty, Mexico
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