<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>During a global shock two forces act upon international remittances in opposite directions: income losses among migrants may reduce their ability to send remittances and, at the same time, migrants’ concern for their family's wellbeing may prompt them to send more remittances back home. Which of these drivers prevail is an empirical matter. We assemble quarterly data at the subnational level in Mexico to study the behavior of remittances during the Covid-19 pandemic. We estimate elasticities of remittances with respect to employment conditions at both origin and destination places of Mexican migrants. Our results show that destination country conditions have been the main driver of remittances to Mexico, whereas origin country conditions had no discernible effect on remittances during the pandemic. We also show that contractions in consumption in Mexico are associated with reductions in remittances. We conclude that risk-coping via remittances provides limited protection during global crises.</p>
</abstract>

During a global shock two forces act upon international remittances in opposite directions: income losses among migrants may reduce their ability to send remittances and, at the same time, migrants’ concern for their family's wellbeing may prompt them to send more remittances back home. Which of these drivers prevail is an empirical matter. We assemble quarterly data at the subnational level in Mexico to study the behavior of remittances during the Covid-19 pandemic. We estimate elasticities of remittances with respect to employment conditions at both origin and destination places of Mexican migrants. Our results show that destination country conditions have been the main driver of remittances to Mexico, whereas origin country conditions had no discernible effect on remittances during the pandemic. We also show that contractions in consumption in Mexico are associated with reductions in remittances. We conclude that risk-coping via remittances provides limited protection during global crises.

Migrant Remittances During a Global Shock: Evidence From the COVID-19 Pandemic in Mexico

IZA Journal of Development and Migration

This work is licensed under the Creative Commons Attribution 4.0 International License.

During a global shock two forces act upon international remittances in opposite directions: income losses among migrants may reduce their ability to send...

Migrant Remittances During a Global Shock: Evidence From the COVID-19 Pandemic in Mexico

Published Online: Nov 02, 2023

Page range: -

Received: Nov 25, 2022

DOI: https://doi.org/10.2478/izajodm-2023-0002

Keywords
Migration, COVID-19, Remittances, Consumption, Mexico

© 2023 Christian Ambrosius et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Migrant Remittances During a Global Shock: Evidence From the COVID-19 Pandemic in Mexico

Published Online: Nov 02, 2023

Page range: -

Received: Nov 25, 2022

DOI: https://doi.org/10.2478/izajodm-2023-0002

KeywordsMigration, COVID-19, Remittances, Consumption, Mexico

© 2023 Christian Ambrosius et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Keywords
Migration, COVID-19, Remittances, Consumption, Mexico