Can Migration Foster Development in Mexico? The Case of Poverty and Inequality

The impact of migration on development can be analysed from a number of perspectives. This article focuses on poverty and inequality. It assesses the relative contribution of migrants to Mexico′s economy through remittances, compared to other Latin American countries; analyses the distributional impact of remittances (with an emphasis on the poor), and compares this impact to the counterfactual impact of migrants’ stay‐at‐home income. It explains the processes leading to scant economic success rates among poor international migrants. Finally, it describes the nature and impact of current Mexican migrant‐oriented policies, and recommends a shift in focus, to lessen emigration, increase the income of migrants, promote returns, and bolster the economic impact of returning migrants.     

The new economics of labour migration and the role of remittances in the migration process

This analysis considers international migration remittances and their impact on development in migrant-sending areas. The new economics of labor migration (NELM) posit that remittances lessen production and market constraints faced by households in poor developing countries. The article states that remittances may be a positive factor in economic development, which should be nurtured by economic policies. The impact of remittances and migration on development varies across locales and is influenced by migrants' remittance behavior and by economic contexts. Criteria for measuring development gains may include assessments of income growth, inequity, and poverty alleviation. It is hard to gauge the level of remittances, especially when remittances may not flow through formal banking systems. The International Monetary Fund distinguishes between worker remittances sent home for over 1 year; employee compensation including the value of in-kind benefits for under 1 year; and the net worth of migrants who move between countries. This sum amounted to under $2 billion in 1970 and $70 billion in 1995. The cumulative sum of remittances, employee compensation, and transfers was almost $1 trillion, of which almost 66% was worker remittances, 25% was employee compensation, and almost 10% was transfers during 1980-95. Total world remittances surpass overseas development assistance. Remittances are unequally distributed across and between countries. Migration research does not adequately reveal the range and complexity of impacts. Push factors can limit options for use of remittances to stimulate development.     

Migrant Remittances and Household Division: The Case of Nang Rong,Thailand

Using data from the Nang Rong Projects social survey (N = 4,989), this work examines the effect of migrant remittances on household splits in an agrarian district of Thailand, a developing country experiencing tremendous economic, demographic, and social transformations. Results show that remittances sent from migrants (especially female migrants) to their origin households affect changes in household affiliation. Findings are consistent with a household allocation model, whereby money sent by migrant siblings significantly affects the movement of the migrant’s sisters and their husbands into a new household. Results suggest that remittances are a significant determinant of household nucleation, especially in the latter stages of the Thai household life cycle. Results also suggest that rural Thais still follow traditional postnuptial residence patterns.     

Mexico and Central America

This article reviews the literature on migration and HIV/AIDS in Mexico and Central America, including Belize, Costa Rica, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, and Panama. Most migrants travel to the US through Mexico. US-Mexico trade agreements created opportunities for increased risk of HIV transmission. The research literature focuses on Mexico. Most countries, with the exception of Belize and Costa Rica, are sending countries. Human rights of migrants are violated in transit and at destination. Migration policies determine migration processes. The Mexican-born population in the US is about 3% of US population and 8% of Mexico's population. About 22% arrived during 1992-97, and about 500,000 are naturalized US citizens. An additional 11 million have a Mexican ethnic background. Mexican migrants are usually economically active men who had jobs before leaving and were urban people who settled in California, Texas, Illinois, and Arizona. Most Mexican migrants enter illegally. Many return to Mexico. The main paths of HIV transmission are homosexual, heterosexual, and IV-drug-injecting persons. Latino migrants frequently use prostitutes, adopt new sexual practices including anal penetration among men, greater diversity of sexual partners, and use of injectable drugs.     

The Decline of International Migration as an Economic Force in Rural Areas: A Mexican Case Study

Since 2000, and especially since 2007, there has been a reduction in the importance of international migration and remittances in major global sending regions as a result of recession in receiving countries, anti‐immigrant policies, and improvement in economic opportunities in origin countries. A household survey in five rural communities in Zacatecas, Mexico, in 1995 and again in 2009 exemplifies these trends. Among youthful adults likely to have first migrated in the decade prior to each of these years, there was a significant drop in the proportion of active migrants. Among the active migrants, stays abroad became longer and more permanent, and their households exhibited fewer remittances, less family business ownership, and fewer local purchases, in 2009 compared to 1995. Finally, non‐migrant households greatly improved their economic status in relation to migrant households over the period, reaching approximate parity with their migrant counterparts.     

Invisible Development? Remittances for Housing and Transnational Reproduction Strategies among Migrant Households in Colombia

In recent years, the Colombian government has embraced the migration‐development agenda by designing programmes to channel remittances to key sectors such as housing and finance,in an attempt to institutionalise migrant households’ transnational economic practices. However, little is known about migrant households’ multifaceted transnational practices, their broader impact on households’ and localities’ socioeconomic development and migrants’ engagement with these migration‐for‐development programmes. Drawing on qualitative data collected along the Colombia‐UK migration network, this paper contrasts the narrow interpretation of development that underpins the migration‐development agenda, as exemplified by the remittances‐for‐housing programmes implemented in Colombia, with the more nuanced social and economic contributions that remittance‐financed housing investments have for migrant households’ and communities’ socioeconomic development. Thus, it provides a more nuanced interpretation of development to account for the often invisible, socioeconomic spinoffs that occur in the process of migrant households’ attempts to produce and reproduce their livelihoods transnationally.     

International Migrants' Remittances and Welfare Status of the Left‐Behind Families in Turkey

In this study, micro implications of remittances are examined based on the data from the 1996 Turkish International Migration Survey (TIMS‐96), part of a comprehensive study of Eurostat and the Netherlands Interdisciplinary Demographic Institute (NIDI). Results of the study imply that migrant savings are generally used for satisfying basic consumption needs. Patterns of expenditures suggest that for 12 percent of all the households receiving remittances, about 80 percent used remittances to improve their standard of living. Considering the variation by regions, it is observed that households in less‐developed regions spent more on daily expenses than those in developed regions. This suggests that daily expenses of households in less developed regions depend significantly on remittances received by households. Moreover, remittances have a positive impact on household welfare; households receiving remittances are found to be better off than nonremitting households. This suggests that migration and remittances have positive indirect effects on incomes of emigrant households. A considerable part of the relevant literature argues that remittances are mostly spent on consumption, housing and land and are not used for productive investment that would contribute to long‐run development. This conclusion often rests on arbitrary definitions of “productive investments.” Access to better nutrition and allocation of more resources to education are, without question, forms of productive investment. Although emigration does not serve as a solution to the problems of national development, it is evident that remittances generate considerable welfare effects, at least for the remittance‐receiving population.     

Return migration to Jamaica and its development potential

Return migration to Jamaica is associated closely with the existence and nature of the transnational linkages established between migrants and their home country, especially at the level of the household and family. Remittances invariably precede, accompany and follow the actual return of migrants and comprise money as well as a range of consumer goods.
Data on the number of returning migrants to Jamaica have been collected officially only since 1992; other information is derived from field studies. The figures show that the US is the source of most return migrants to Jamaica, with the United Kingdom second.
Likewise, there are few official statistics on remittances, especially of those entering the country through informal channels. Nevertheless, data on the receipt of money through the Bank of Jamaica, indicate that during the 1990s remittances as a percentage of GDP exceeded that of the traditional foreign currency earners of bauxite and sugar.
Growing awareness of the potential of the Jamaican overseas community has led the Government of Jamaica to establish programmes, including The Return of Talent programme, supported by the International Organization for Migration (IOM), to encourage the return of nationals.
Different types of return migrants have the potential to make different kinds of contributions to national development – some through their skills, educational and professional experience, others through the financial capital which they transfer for investment or as retirement income. However, the most significant development potential of return lies in the social and economic conditions in Jamaica itself. If confidence levels are high, there will be little difficulty in attracting persons to return and financial transfers and investments will increase. Furthermore, the social and economic environment largely conditions the extent to which skills and talent as well as the financial capital are effectively utilized.     

Social mobility among migrants between Mexico and the U.S. and within the U.S. labor market

This paper uses data collected in 4 Mexican communities (2 rural and 2 urban) in 1982 and 1983, using a sample of 200 households, plus an additional 25 households. This analysis supports these hypotheses: 1) a U-shaped pattern of occupational mobility exists among migrants to the US; 2) the reversal of the initial downward mobility is positively correlated with the accumulation of experience within the US; and 3) the relative steepness of both legs of the pattern vary across socioeconomic with rural origin, illegal, and poorly educated migrants experiencing the slowest reversal of fortune. The occupational mobility of Mexican migrants to the US has 2 distinct phases: 1) labor market entry and 2) that which occurs within the US labor market. Both phases are characterized by occupational immobility and by migrants' area of origin. Other important findings are 1) the slowness with which upward mobility occurs among migrants on their 1st trip, 2) the dominance of agriculture as an occupational group, and 3) an improvement in mobility prospects with increased US experience for repeat migrants. Immobility for 1st time entrants pervades all occupational categories and is exceptionally high for rural origin migrants in agriculture. Rural origin unskilled workers encounter greater mobility constraints, indicating a rural agricultural worker may accomplish an upward movement to the unskilled category, but the chances of further movement are remote. Upon entering the US, the probability of being employed in agriculture is over 25% for all groups except the unskilled. Adjusting successfully to US society is best accomplished by migrants whose Mexican occupation is professional, technical, skilled, or service or who have carefully timed their migration and have accumulated significant experience in the host society. It is only with exposure to the US society, either through a prolonged stay or many trips, that a migrant can overcome the debilitating effects of a disadvantaged socioeconomic background.     

Remittances and inequality in Cape Verde: the impact of changing family organization

There is a risk that remittances exacerbate socio‐economic inequality among the recipients. In this case study of a Cape Verdean community I explore how variations in family organization interact with the distribution of remittances and their effects on local social stratification. Formerly, the typical migrant was male and directed the main part of his remittances to a nuclear household he had left behind. Households that included a male migrant were able to raise their standard of living over that of households without a migrant member. Today, relationships between women and men have become increasingly unstable and long‐lasting transnational family ties are now rarely based on a conjugal relationship. Both women and men migrate and they often start up a new family abroad. Consequently, when migrants send remittances to Cape Verde they do not invest in their own future lives as they did in the past. Instead, they try to support ageing parents and young children left behind. This means that migrants often have economic obligations to several households and that they are therefore only able to send limited amounts of money to each. This implies, first, that many households are recipients of remittances and, second, that they normally only receive small sums. In conclusion, it may be said that these changes in family organization have reduced the risk that remittances will exacerbate inequality.     

“Back There We Had Nothing to Eat”: The Case of Transnational Food Insecurity

This article discusses migrant food insecurity in the United States from the perspective of Mexican and Central American migrant women. Many describe migrating because they had nothing to eat in their countries of origin. Migration is thus framed as a necessary strategy for overcoming food insecurity. I argue that these women's perspectives are unique in the migration literature because food security comprises a gendered labour from which men are frequently spared. Unfortunately, food insecurity still prevails in these women's households in the US. Assuming a “double‐duty” workday of earning wages and overseeing care within households, these women experience the added burden of ensuring food security of households “back there.” Thus, I argue that the food practices of Mexican and Central American migrant women provide a unique lens through which to understand the increased feminization of transnational migration from Latin America to other regions of the world.     

Migration Plans and Received Remittances: Evidence from Fiji and Tonga1

This paper investigates the relationship between remittances and migration intentions in the source country using data from households in the Pacific island countries of Tonga and Fiji. Unlike previous research it accounts for potential endogeneity in the relationship between remittances and intentions and also includes households that receive remittances but do not have current migrants. We find a positive impact of remittances on intentions. The impact of remittances on intentions is stronger in a country with a longer history of migration and stronger in households with current migrants than those without migrants. These results provide new evidence on the role of remittances in the development of migration chains.     

Migration, remittances and rural development: findings of a case study in the Indian Punjab

Rural household survey data in the Ludhiana district of the Indian Punjab was used to study the nature and role of remittances in rural development. Of the 1646 outmigrants from the area since 1961, the 949 women who migrated for marriage and children under 12 years old were excluded from the study. Nearly all husbands who outmigrated had sent remittances. Parents and grandparents were 2nd and 3rd most likely to remit, but their numbers were small. Education did not correlate with remittance. Distance and time since emigration did not affect remittance. The frequency and the size of remittances are discussed. Remittances to outmigrants were insignificant. The remittances from outmigrants seem to raise the incomes and the levels of living of rural households. The remittances serve the purpose of redistributing income from urban to rural areas. Remittances also widened the gap between rich and poor in the rural areas because the better-off groups were more likely to receive remittances than the poorer groups. Most of the money sent from outmigrants was spent on consumable goods, food and clothing. Only a small proportion was spent on productive investment. This was usually done by farming families who invested in land or farm necessities. It is concluded that remittances from outmigrants can have a positive effect on the rural economies. Investment opportunities for nonagricultural families must be provided.     

Impacts of male outmigration on women: a case study of Kutum / Northern Darfur / Sudan

This case study of 313 households in the Kutum area in Western Sudan focuses on female headed households with migrant husbands. Free leases of land by women were common. 65% of the sample owned fields, and over 50% had home gardens in town. Among villagers 94% owned fields, and 74% had additional gardens. 28.3% of town owners of fields or gardens employed seasonal wage laborers, of whom 33% were female workers. None of the villages hired agricultural laborers. Labor shortages appeared only during weeding times. Fields were cultivated and housing was repaired mostly by unpaid female labor: a gender-specified role. Strategies for preventing poverty included cash crop cultivation, petty trade, sales of property, seasonal wage labor, and migration. The number of agricultural wage workers increased during famines. Findings show that 69 men migrated to Arab countries and 35 to other areas outside Darfur. 62.5% of the 115 migrants were married, and 20.8% did not send remittances home after more than a 6 months absence. 46.5% of unmarried migrants did not send remittances. 15.6% of the 77 rural women were dissatisfied with remittances. 21.5% of 121 migrants were away for more than a year; 66.1% were away 2-5 years. 12.4% were gone for more than 5 years. Irregular remittances were attributed to high urban living costs, to irregular means of sending money, and to saving for a family chaperone. Remittances satisfied immediate consumption needs. Outmigration was not really a survival strategy but an anti-destitution measure. Higher wage rates were not considered a primary motive for outmigration. Under drought conditions strategies included development of gardening for food and cash production. Out migration resulted in female household heads, in the need for cash income for supplementary items, in an increased work load including the men's activities, in women as the main food producers and thus more subject to environmental effects, and in overwork, which reduced input in children's education and domestic tasks. 37% of El-Tahir women with migrating spouses had trouble meeting basic needs, 25.6% had shortages of family labor, and 17.4% had difficulty with child rearing. Migrants' wives who were separated from extended families suffered from loss of social prestige and income. Women regardless of class or educational level were considered inferior to men. Women's influence was at the individual, household, and informal group level.     

Cherishing the Goose with the Golden Eggs: Trends in Migrant Remittances from Europe to Morocco 1970–20041

In contrast to earlier predictions, migrant remittances from Europe to Morocco have shown an increasing trend over the past decades. Remittances constitute a vital and relatively stable source of foreign capital. The so‐called “euro effect” and concomitant money laundering can only explain part of the recent, extreme surge in remittances. The structural solidity of remittances is explained by the unforeseen persistence of migration to northwestern Europe; new labor migration toward southern Europe; and the durability of transnational and transgenerational links between migrants and stay‐behinds. The stable economic‐political environment and new “enlightened” policies toward migrants explain why Morocco has been relatively successful in channeling remittances through official channels.     

Labor Migration,Remittances and Household Income: A Comparison between Filipino and Filipina Overseas Workers1

The major purpose of the research is to examine gender differences in patterns of labor market activity, economic behavior and economic outcomes among labor migrants. While focusing on Filipina and Filipino overseas workers, the article addresses the following questions: whether and to what extent earnings and remittances of overseas workers differ by gender; and whether and to what extent the gender of overseas workers differentially affects household income in the Philippines. Data for the analysis were obtained from the Survey of Households and Children of Overseas Workers (a representative sample of households drawn in 1999–2000 from four major “labor sending” areas in the Philippines). The analysis focuses on 1,128 households with overseas workers. The findings reveal that men and women are likely to take different jobs and to migrate to different destinations. The analysis also reveals that many more women were unemployed prior to migration and that the earnings of women are, on average, lower than those of men, even after controlling for variations in occupational distributions, country of destination, and sociodemographic attributes. Contrary to popular belief, men send more money back home than do women, even when taking into consideration earnings differentials between the genders. Further analysis demonstrates that income of households with men working overseas is significantly higher than income of households with women working overseas and that this difference can be fully attributed to the earnings disparities and to differences in amount of remittances sent home by overseas workers. The results suggest that gender inequal‐     

Las Migraciones en el Proceso de Integracion de las Americas: Seminario Internacional (Migration in the Integration Process in the Americas: International Seminar). Conference report

This conference report of the Centro de Estudios Migratorios Latinoamericanos and the Center for Migration Studies pertains to meetings held in August 1992. Summary information on migration movements in Latin America is presented by region and subject. The topic of integration in the Americas was presented by Mr. Lelio Marmora. Other topics and presenters include the new Colombian Migration Policy (Mr. Carlos Adolfo Arenas), the integration policies in Central America (Mr. Pilar Norza of Costa Rica, Raimundo Alvarado of El Salvador, and Luis Armando Gusman of Nicaragua), the Andean Pact agreements (representatives of each country), US immigration policy (Charles B. Keely), the Mexican integration with Latin America and immigration to the US (Jorge Bustamante), migration to Bolivia and Argentina and Chile, and transnationalism in the Caribbean (Professor Andre Corten). Migration policy needs to be tailored specifically to the situation in Latin America, and greater attention needs to be devoted to labor migrants' rights and working conditions. There are still fundamental differences among countries in policies regarding the free circulation of persons across borders. There is a division among those who support migration and those who are realists. National sovereignty issues are solvable because of a common national past and a relatively homogenous population. Another opinion is that Latin America is more diverse than commonly recognized. Capital is protected more in international agreements than is migrant labor. Regional integration for the US does mean immigration from Mexico. The US sees Mexican migration as a policy problem, and Mexico sees migration as a labor opportunity.     

International Migration and the Demographic Transition: A Two‐Way Interaction

The paper explores the relationship between the demographic transition and international migration, that is, between population dynamics and direct connectivity between peoples. The first part examines how ideas conveyed by migrants to non‐migrants of their community of origin are susceptible to impact on practices that lead to the reduction of birth rates in source countries of migration and concludes that international migration may be one of the mechanisms through which demographic transition is disseminated. The second part shows that declining birth rates in origin countries generate a new profile of the migrant and suggests that future migrants will typically leave no spouses or children in the home country and therefore their objective will no longer be to improve the family’s standing at home for the mere reason that there is no longer such a family, but to increase opportunities for themselves. Migration policies of origin countries on remittances as well as those of destination countries on family reunification will have to be reconsidered.     

Immigrant Remittances,Stability of Employment and Relative Deprivation

This paper examines the factors affecting immigrant remittances on the basis of the experience of immigrants to Greece. In addition to factors commonly used in similar analyses, we examine two new ones: stability of employment and relative deprivation. Our results show that the stability of employment has no significant effect on the decision to remit, while relative deprivation does. Immigrants from less relatively deprived families are more likely to send money back home. As for their effects on the size of remittances, our results show that the relative deprivation variable is insignificant, while those in steady jobs remit less money than those employed in unsteady jobs. The latter finding suggests that fluctuations in migrant employment and migrant income are borne by migrants themselves, whose goal appears to be to secure a steady flow of remittances to country of origin. This type of remittance behaviour has implications for the interpretation of volatility in remittance flows to migrant–sending countries. Specifically, variation in flows may be attributable to changes in the numbers of migrants and not only to changes in the economic and employment conditions in destination countries.     

The impact of remittances from Canada's seasonal workers programme on Mexican farms

Based on a survey of participants in Canada's Seasonal Agricultural Workers Program, the authors’ three‐stage least squares estimation of a simultaneous equation model finds that migrants’ remittances enhance on‐farm investments in Mexico, which, in turn, increase farm income. Remittances are also found to have a positive influence on non‐farm income in Mexico, by giving respondents the possibility of starting a new business and diversifying their investments. These results support the hypothesis underlying the “new economics of labour migration” that remittances contribute to economic development by relaxing the credit constraint on the investment function of family farms.