Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/51820 
Year of Publication: 
2011
Series/Report no.: 
IZA Discussion Papers No. 5568
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
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.
Subjects: 
remittances
income smoothing
JEL: 
F22
O15
O54
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size
119.36 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.