Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/115477
Authors: 
Brito, Steve
Corbacho, Ana
Osorio, René
Year of Publication: 
2014
Series/Report no.: 
IDB Working Paper Series IDB-WP-514
Abstract: 
This working paper studies the effect of remittances from the United States on crime rates in Mexico. The topic is examined using municipal-level data on the percent of household receiving remittances and homicides per 100,000 inhabitants. Remittances are found to be associated with a decrease in homicide rates. Every 1 percent increase in the number of households receiving remittances reduces the homicide rate by 0.05 percent. Other types of crimes are analyzed, revealing a reduction in street robbery of 0.19 percent for every 1 percent increase in households receiving remittances. This decrease is also observed using a state-level panel in another specification. The mechanisms of transmission could be related to an income effect or an incapacitation effect of remittances increasing education, opening job opportunities, and/or reducing the amount of time available to engage in criminal activities.
Subjects: 
Remittances
Migration
Crime
Homicides
Mexico
JEL: 
J15
J22
O12
O15
O54
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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