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nited States to Latin America –including improved diets and housing conditions– partly due to a concentration of remittances in low-income rural households. Gosh (2006) points out that the majority of migrants are non-poor. Therefore, Gosh sees an indirect link (if any) with poverty reduction in migrants’ home countries, as a consequence of the spill-over effect of flows received by non-poor migrants’ relatives. The same report does acknowledge the existence of poor households among recipients, as well as the capacity of collective remittances to improve infrastructure in hometown communities. However, poor people are a minority of remittance recipients.

 

Other papers find a positive influence of remittances on education outcomes in some countries. See for instance Cox, Edwards, and Ureta (2003), or Acosta (2007), for analyses of El Salvador, or Yang (2004) for analysis of the Philippines.

 

In the particular case of Ecuador, Acosta et al. (2007a) find a weak impact of remittances on poverty reduction at the national level, but a significant impact for individual receiving households. The same study observes a positive impact on education, and specifically on years of accumulated schooling, although this is limited to urban areas. The study also acknowledges a weaker impact by remittances on development in Ecuador, as compared to other countries analyzed therein. Calero et al. (2008) find similar results. In Ecuador, remittances have a positive effect on both school enrollment and child labor, especially among girls in rural areas. In addition, Pacheco (2007) finds no significant effects by remittances on students’ cognitive achievement among children from rural areas. Guerrero (2007) finds no significant effects by remittances on health spending. According to Acosta et al. (2006), remittances might have helped 5% of Ecuador’s population out of poverty between 2001 and 2002. This limited impact is the result of the concentration of remittances in non-poor families.

 

Other studies on the impact of remittances on development at the household and micro level include their role as insurance against risks (Kapur, 2004; Taylor, 1999), as well as their impact on income inequality (Acosta et al., 2007b; Adams, 1991; Adams and Page, 2005; Gosh, 2006; Koechlin and León, 2006; López-Córdova and Olmedo, 2006; IMF, 2005) and on employment (López-Córdova and Olmedo, 2006). There are fewer papers or reports on the meso or community-level impact of migrants’ transfers. One example is Gosh (2006), who assesses the positive impact of remittances on housing and agrarian techniques. At the macro level, the bulk of academic literature is devoted to remittances’ impact on Dutch disease (Gosh, 2006; IMF, 2005; Martínez, 2007; López, et al., 2007), [10] on exchange rates, exports, and income (Amuedo-Dorantes and Pozo, 2004; Fajnzylber and López, 2007; Gosh, 2006; IMF, 2005; López-Córdova and Olmedo, 2006; World Bank, 2006 ). [11]

 

2. Stylized facts

 

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