Abstract
The probability that Mexican households receive remittances increases in response to temporary loss of employment by household heads. Evidence indicates that the probability doubles in the short-term, with a stronger effect in the first quarter of unemployment. Taking into account inter-household transfers within Mexico, the increase in the probability of private transfers is similar in households with low and high access to migratory networks in the U. S. The effectiveness of private transfers as an insurance mechanism has been reduced in an environment of economic crisis.
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Notes
2006 National Survey on Household Incomes and Expenses (ENIGH).
The proportion of households receiving remittances in 2000 comes from the Mexican Census.
For example, see Morten 2010.
The U.S. National Bureau of Economic Research officially describes the crisis as lasting from December 2007 (Q4 2007) to June 2009 (Q2 2009). If we exclude households with their first interview in Q1 2010 from the crisis, the estimated results are similar.
Available at http://www.desinventar.org/es/database.
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Lara, J. Remittances as an Insurance Mechanism in the Labor Market. J Labor Res 37, 368–387 (2016). https://doi.org/10.1007/s12122-016-9226-3
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DOI: https://doi.org/10.1007/s12122-016-9226-3