Chronicling Latinos diverse experience in a changing America

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Chronicling Latinos diverse experience in a
changing America
1615 L Street, NW, Suite 700 Washington, DC
20036 202-419-3600(main) 202-419-3608(fax) www.pew
hispanic.org
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Poverty Reduction and Decay in Sending The
Long-Term Macro-Economic Effects of Remittance
Receipts in Mexico
Presented at the Annual Meeting of the
Population Association of America, Los Angeles,
CA Roberto Suro Pew Hispanic Center April 1,
2006
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Research Questions
What are the redistributive effects of
remittance receipts on migrant sending
communities? To what extent is the pace
remittance sending related to the extent of
assimilation/acculturation of the sender?
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Instruments Used

• Pew Hispanic Center Survey of Remittance
  Receivers in Mexico
• Pew Hispanic Center Survey of Mexicans Living in
  the U.S. on Absentee Voting in Mexican Elections
• Pew Hispanic Center Survey of Mexican Migrants

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Redistributive Effects of Remittances
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Pew Hispanic Center Survey of Remittance
Receivers in Mexico

• 12 month omnibus survey in Mexico in 2005
• Statistically representative
• 15,284 households
• 16.6 have received remittances by someone who
  lives/works in the U.S. in the past year

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Remittances are Reducing Income Inequality in
Mexico
Monthly Family Income by Households who Receive
Remittances
Households Receiving Remittances by Monthly
Family Income
Source Pew Hispanic Center Survey of Remittance
Receivers in Mexico, 2005.
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Remittance Receipts are Used for Everyday
Expenses . . .
Spending Remittances Received by Monthly Family
Income
Source Pew Hispanic Center Survey of Remittance
Receivers in Mexico, 2005.
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. . .But Less for Building Assets
Purchases by Remittance Receivers and
Non-Receivers
Source Pew Hispanic Center Survey of Remittance
Receivers in Mexico, 2005.
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Potentially Asset-Building Activities Increase
with Income
Purchases by Remittance Receivers and
Non-Receivers by Monthly Family Income
Source Pew Hispanic Center Survey of Remittance
Receivers in Mexico, 2005.
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Remittance Sending and Changes in the Life of the
Migrant
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Pew Hispanic Center Survey of Mexicans Living in
the U.S. on Absentee Voting in Mexican Elections

• N987 Mexican Born Adults
• JanuaryFebruary, 2006
• Margin of Error 4.37
• 58 reported sending remittances to Mexico in the
  past year

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Differences in the Pace of Sending Remittances
Frequent Senders by Time in the U.S.
Source Pew Hispanic Center Survey of Mexicans
Living in the U.S. in Absentee Voting in Mexican
Elections, 2006.
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Survey of Mexican Migrants

• N 4,836
• All respondents were interviewed while applying
  for a Matricula Consular in 2005
• Interview sites Los Angeles, New York, Chicago,
  Atlanta, Raleigh, Fresno
• 78 reported sending remittances, 52 sending at
  least once a month

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Remittance sending A broad phenomenon

• 78 of sample
• 87 of males, 66 of females (employment for
  sure, household reporting?)
• 84 renters vs 74 homeowners
• No difference by age except drop over 55
• No difference by education except less for ollege
  No difference by US ID or first visit
• Somewhat higher rate in mid incomes (200-400) a
  week than high or low ends
• No difference by unemployment, full/part time
  work or industry

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Amount of Time in the U.S. is a Significant
Factor
Remittance Sending by Time in the U.S.
Source Pew Hispanic Center Survey of Mexican
Migrants, 2005.
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Remittance sending and language

• Higher prevalence of senders (yes/no) and
  frequent senders (once a month or more) among
  those who speak little or no English.

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Remittance sending and intent to stay in US

• Sending is highest when intent is fixed period,
  lowest when indefinite
• Same patterns hold for frequent senders

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Decay Hypothesis

• Surveys of senders suggest that decay is notable
  but limited.
• Significant numbers of long-term report
  remittance sending nonetheless

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Weaknesses

• Absence of longitudinal studies means reliance on
  surveys conducted in recent years.
• Decay hypothesis requires making assumptions
  about past behavior of long-term migrants and
  future behavior of recent arrivals.
• Counter hypothesis Recent changes in remittance
  sending behavior by all migrants.