Search Results

You are looking at 1 - 10 of 242 items for :

Clear All
Aleksandra Babii, Ms. Alina Carare, Dmitry Vasilyev, and Mr. Yorbol Yakhshilikov
Traditional models relying on standard variables like the U.S. Hispanic unemployment rate fared well in explaining remittances to CAPDR and Mexico during the pre-pandemic period. However, they fail to predict the sustained growth in remittances since June 2020, including the significant increase in the average amount remitted. Using data from over 300 remittances corridors (from 23 U.S. states to 14 Salvadoran departments), we find that this increase is primarily explained by the dynamics of U.S. states real wages, as well as more temporary factors like U.S. unemployment relief (including the extraordinary pandemic support), U.S. states mobility, and COVID-19 infections at home. The paper also analyses what role the change in the modes of transmission of remittances, additional U.S. fiscal stimulus and U.S. labor market developments, especially in the sectors were CAPDR and Mexican migrants preponderantly work, play in explaining aggregate remittances growth.
Aleksandra Babii, Ms. Alina Carare, Dmitry Vasilyev, and Mr. Yorbol Yakhshilikov

I. Introduction Remittances represent a very important source of income for most Central American countries and Mexico . Many migrants from the CAPDR region (Central America, Panama and the Dominican Republic) work in the U.S. and send remittances home. For example, Mexico receives the most remittances (US$ 34.6 billion in 2019) and Guatemala in CAPDR (US$10.5 billion in 2019). However, scaled over the economy, El Salvador and Honduras remittances represented over 20 percent of GDP in 2019. Most importantly, one out of six families in the Dominican Republic