Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/240196 
Year of Publication: 
2021
Series/Report no.: 
Discussion Paper No. 2021/13
Publisher: 
Freie Universität Berlin, School of Business & Economics, Berlin
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.
Subjects: 
Migration
COVID-19
Remittances
Consumption
Mexico
JEL: 
F22
F24
J23
O54
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size
538.78 kB





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