This paper presents evidence suggesting that international migrant remittances generally lead to improved developmental outcomes. Using a cross-section of Mexican municipalities in 2000, I show that increases in the fraction of households receiving international remittances are generally correlated with better schooling and health outcomes and with reductions in some dimensions of poverty. My results take into account the likely endogeneity among migration, remittances, and developmental outcome variables, and they suggest that measures to facilitate remittance flows are desirable.
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José Ernesto López Córdova (2005) studied this question.
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