Does Migration Reshape Expenditures in Rural Households? Evidence from Mexico

Migration reshapes rural economies in ways that may go beyond the contribution of migrant remittances to household income. Consumption and investment expenditures by migrant-sending households may transmit some of the impacts of migration to others inside and outside the rural economy, and they also...

Full description

Bibliographic Details
Main Authors:	Taylor, J. Edward, Mora, Jorge
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ALLOCATION MODELS BUDGET CONSTRAINTS CAPITA INCOME COMMODITIES COMMUNITIES CONSUMER CONSUMER DEMAND CONSUMER GOODS CONSUMPTION EXPENDITURES DURABLE GOODS ECONOMETRIC ANALYSIS ECONOMIC GROWTH EFFECT OF REMITTANCES EFFECTS OF REMITTANCES EQUATIONS EXCHANGE RATE EXPENDITURES HOUSEHOLD BUDGETS HOUSEHOLD CONSUMPTION HOUSEHOLD EXPENDITURE HOUSEHOLD EXPENDITURES HOUSEHOLDS HOUSING HUMAN CAPITAL IMPACT OF MIGRATION INCOME INCOMES INCREASE IN REMITTANCES INHABITANTS INTERNATIONAL MIGRANTS INTERNATIONAL MIGRATION INVESTMENT CHOICES INVESTMENT EXPENDITURES LABOR MARKETS LESS DEVELOPED COUNTRIES MARGINAL PROPENSITY TO CONSUME MARKET PRICES MIGRANT REMITTANCES MIGRANTS OPPORTUNITY COST REMITTANCE REMITTANCE RECEIPTS REMITTANCE TRANSFER REMITTANCE USE REMITTANCE-RECEIVING HOUSEHOLDS REMITTANCES RISK AVERSION RURAL AREAS RURAL COMMUNITIES RURAL ECONOMY SALES SHADOW PRICES SUPERMARKETS URBAN COMMUNITIES USE OF REMITTANCES VILLAGES WAGE WORK WEALTH
Online Access:	http://documents.worldbank.org/curated/en/2006/02/6567904/migration-reshape-expenditures-rural-households-evidence-mexico http://hdl.handle.net/10986/8785

id	okr-10986-8785
recordtype	oai_dc
spelling	okr-10986-87852021-04-23T14:02:40Z Does Migration Reshape Expenditures in Rural Households? Evidence from Mexico Taylor, J. Edward Mora, Jorge ALLOCATION MODELS BUDGET CONSTRAINTS CAPITA INCOME COMMODITIES COMMUNITIES CONSUMER CONSUMER DEMAND CONSUMER GOODS CONSUMPTION EXPENDITURES DURABLE GOODS ECONOMETRIC ANALYSIS ECONOMIC GROWTH EFFECT OF REMITTANCES EFFECTS OF REMITTANCES EQUATIONS EXCHANGE RATE EXPENDITURES HOUSEHOLD BUDGETS HOUSEHOLD CONSUMPTION HOUSEHOLD EXPENDITURE HOUSEHOLD EXPENDITURES HOUSEHOLDS HOUSING HUMAN CAPITAL IMPACT OF MIGRATION INCOME INCOMES INCREASE IN REMITTANCES INHABITANTS INTERNATIONAL MIGRANTS INTERNATIONAL MIGRATION INVESTMENT CHOICES INVESTMENT EXPENDITURES LABOR MARKETS LESS DEVELOPED COUNTRIES MARGINAL PROPENSITY TO CONSUME MARKET PRICES MIGRANT REMITTANCES MIGRANTS OPPORTUNITY COST REMITTANCE REMITTANCE RECEIPTS REMITTANCE TRANSFER REMITTANCE USE REMITTANCE-RECEIVING HOUSEHOLDS REMITTANCES RISK AVERSION RURAL AREAS RURAL COMMUNITIES RURAL ECONOMY SALES SHADOW PRICES SUPERMARKETS URBAN COMMUNITIES USE OF REMITTANCES VILLAGES WAGE WORK WEALTH Migration reshapes rural economies in ways that may go beyond the contribution of migrant remittances to household income. Consumption and investment expenditures by migrant-sending households may transmit some of the impacts of migration to others inside and outside the rural economy, and they also may shape the potential effects of migration within the source household. Numerous studies have attempted to quantify the impact of migrant remittances on expenditures in migrant-sending households following one of two approaches. The first asks how migrant remittances are spent. It has the advantage of being simple but the significant disadvantage of ignoring the fungibility of income from migrant and nonmigrant sources. Remittances almost certainly have indirect effects on expenditures by way of their contribution to households' total budgets. The second uses a regression approach that considers remittances as an explanatory variable, in addition to total income and other controls, in a household expenditure demand system. It has the advantage of enabling one to test whether remittances affect expenditures in ways that are independent of their contribution to total income. But it does not take into account other ways, besides remittances, in which migration may influence expenditure patterns in households with migrants. It also may suffer from econometric bias resulting from the endogeneity of migration and remittance receipts. The same variables may simultaneously affect both remittances and household expenditures, and unless one controls for this, biased estimates may result. 2012-06-22T15:39:12Z 2012-06-22T15:39:12Z 2006-02 http://documents.worldbank.org/curated/en/2006/02/6567904/migration-reshape-expenditures-rural-households-evidence-mexico http://hdl.handle.net/10986/8785 English Policy Research Working Paper; No. 3842 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Latin America & Caribbean Mexico
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	ALLOCATION MODELS BUDGET CONSTRAINTS CAPITA INCOME COMMODITIES COMMUNITIES CONSUMER CONSUMER DEMAND CONSUMER GOODS CONSUMPTION EXPENDITURES DURABLE GOODS ECONOMETRIC ANALYSIS ECONOMIC GROWTH EFFECT OF REMITTANCES EFFECTS OF REMITTANCES EQUATIONS EXCHANGE RATE EXPENDITURES HOUSEHOLD BUDGETS HOUSEHOLD CONSUMPTION HOUSEHOLD EXPENDITURE HOUSEHOLD EXPENDITURES HOUSEHOLDS HOUSING HUMAN CAPITAL IMPACT OF MIGRATION INCOME INCOMES INCREASE IN REMITTANCES INHABITANTS INTERNATIONAL MIGRANTS INTERNATIONAL MIGRATION INVESTMENT CHOICES INVESTMENT EXPENDITURES LABOR MARKETS LESS DEVELOPED COUNTRIES MARGINAL PROPENSITY TO CONSUME MARKET PRICES MIGRANT REMITTANCES MIGRANTS OPPORTUNITY COST REMITTANCE REMITTANCE RECEIPTS REMITTANCE TRANSFER REMITTANCE USE REMITTANCE-RECEIVING HOUSEHOLDS REMITTANCES RISK AVERSION RURAL AREAS RURAL COMMUNITIES RURAL ECONOMY SALES SHADOW PRICES SUPERMARKETS URBAN COMMUNITIES USE OF REMITTANCES VILLAGES WAGE WORK WEALTH
spellingShingle	ALLOCATION MODELS BUDGET CONSTRAINTS CAPITA INCOME COMMODITIES COMMUNITIES CONSUMER CONSUMER DEMAND CONSUMER GOODS CONSUMPTION EXPENDITURES DURABLE GOODS ECONOMETRIC ANALYSIS ECONOMIC GROWTH EFFECT OF REMITTANCES EFFECTS OF REMITTANCES EQUATIONS EXCHANGE RATE EXPENDITURES HOUSEHOLD BUDGETS HOUSEHOLD CONSUMPTION HOUSEHOLD EXPENDITURE HOUSEHOLD EXPENDITURES HOUSEHOLDS HOUSING HUMAN CAPITAL IMPACT OF MIGRATION INCOME INCOMES INCREASE IN REMITTANCES INHABITANTS INTERNATIONAL MIGRANTS INTERNATIONAL MIGRATION INVESTMENT CHOICES INVESTMENT EXPENDITURES LABOR MARKETS LESS DEVELOPED COUNTRIES MARGINAL PROPENSITY TO CONSUME MARKET PRICES MIGRANT REMITTANCES MIGRANTS OPPORTUNITY COST REMITTANCE REMITTANCE RECEIPTS REMITTANCE TRANSFER REMITTANCE USE REMITTANCE-RECEIVING HOUSEHOLDS REMITTANCES RISK AVERSION RURAL AREAS RURAL COMMUNITIES RURAL ECONOMY SALES SHADOW PRICES SUPERMARKETS URBAN COMMUNITIES USE OF REMITTANCES VILLAGES WAGE WORK WEALTH Taylor, J. Edward Mora, Jorge Does Migration Reshape Expenditures in Rural Households? Evidence from Mexico
geographic_facet	Latin America & Caribbean Mexico
relation	Policy Research Working Paper; No. 3842
description	Migration reshapes rural economies in ways that may go beyond the contribution of migrant remittances to household income. Consumption and investment expenditures by migrant-sending households may transmit some of the impacts of migration to others inside and outside the rural economy, and they also may shape the potential effects of migration within the source household. Numerous studies have attempted to quantify the impact of migrant remittances on expenditures in migrant-sending households following one of two approaches. The first asks how migrant remittances are spent. It has the advantage of being simple but the significant disadvantage of ignoring the fungibility of income from migrant and nonmigrant sources. Remittances almost certainly have indirect effects on expenditures by way of their contribution to households' total budgets. The second uses a regression approach that considers remittances as an explanatory variable, in addition to total income and other controls, in a household expenditure demand system. It has the advantage of enabling one to test whether remittances affect expenditures in ways that are independent of their contribution to total income. But it does not take into account other ways, besides remittances, in which migration may influence expenditure patterns in households with migrants. It also may suffer from econometric bias resulting from the endogeneity of migration and remittance receipts. The same variables may simultaneously affect both remittances and household expenditures, and unless one controls for this, biased estimates may result.
format	Publications & Research :: Policy Research Working Paper
author	Taylor, J. Edward Mora, Jorge
author_facet	Taylor, J. Edward Mora, Jorge
author_sort	Taylor, J. Edward
title	Does Migration Reshape Expenditures in Rural Households? Evidence from Mexico
title_short	Does Migration Reshape Expenditures in Rural Households? Evidence from Mexico
title_full	Does Migration Reshape Expenditures in Rural Households? Evidence from Mexico
title_fullStr	Does Migration Reshape Expenditures in Rural Households? Evidence from Mexico
title_full_unstemmed	Does Migration Reshape Expenditures in Rural Households? Evidence from Mexico
title_sort	does migration reshape expenditures in rural households? evidence from mexico
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2006/02/6567904/migration-reshape-expenditures-rural-households-evidence-mexico http://hdl.handle.net/10986/8785
_version_	1764406006732816384

Does Migration Reshape Expenditures in Rural Households? Evidence from Mexico

Similar Items