Arbeitspapier

Remittances and Income Smoothing

Due to inadequate savings and binding borrowing constraints, income volatility can make households in developing countries particularly susceptible to economic hardship. We examine the role of remittances in either alleviating or increasing household income volatility using Mexican household level data over the 2000 through 2008 period. We correct for reverse causality and endogeneity and find that while income smoothing does not appear to be the main motive for sending remittances in a non-negligible share of households, remittances do indeed smooth household income on average. Other variables surrounding income volatility are also considered and evaluated.

Language
Englisch

Bibliographic citation
Series: CReAM Discussion Paper Series ; No. 07/11

Classification
Wirtschaft
International Migration
Subject
remittances
income smoothing

Event
Geistige Schöpfung
(who)
Amuedo-Dorantes, Catalina
Pozo, Susan
Event
Veröffentlichung
(who)
Centre for Research & Analysis of Migration (CReAM), Department of Economics, University College London
(where)
London
(when)
2011

Last update
10.03.2025, 11:44 AM CET

Data provider

This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Arbeitspapier

Associated

  • Amuedo-Dorantes, Catalina
  • Pozo, Susan
  • Centre for Research & Analysis of Migration (CReAM), Department of Economics, University College London

Time of origin

  • 2011

Other Objects (12)