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An Inquiry into Remittances and Income Smoothing

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AbstractWhile we uncover evidence that remittances smooth household income, for a substantial fraction of household we find that remittance instead increase income volatility. We also explore the determinants of income volatility for all households. We find that in some cases, the determinants of household income volatility are the same for remittance-receiving and non-remittance receiving households, as for example with respect to the number of young children in the household, the educational attainment of household members and the location of the household. In other cases, determinants like the gender of the household head, the number of elderly household members and household size impact remittance-receiving and non-remittance receiving households differently.

Affiliations: 1: San Diego State University 5550 Campanile Drive, San Diego, CA 92182, Email:, URL:; 2: Western Michigan University 1903 West Michigan Ave., Kalamazoo, MI 49008, Email:, URL:


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1. Amuedo-Dorantes Catalina , Pozo Susan "“Remittances as Insurance: Evidence from Mexican Migrants”" Journal of Population Economics 2006a Vol 19 2 227 254
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