Skip to main content
Article thumbnail
Location of Repository

New Evidence on the Role of Remittances on Health Care Expenditures by Mexican Households

By Catalina Amuedo-Dorantes and Susan Pozo


Using Mexico's 2002 wave of the Encuesta Nacional de Ingresos y Gastos de los Hogares (ENIGH), we find that international remittances raise health care expenditures. Approximately 6 pesos of every 100 peso increment in remittance income are spent on health. The sensitivity of health care expenditures to variations in the level of international remittances is almost three times greater than its responsiveness to changes in other sources of household income. Furthermore, health care expenditures are less responsive to remittance income among lower-income households. Since the lower responsiveness may be partially due to participation of lower-income households in public programs like PROGRESA (now called Oportunidades), we also analyze the impact of remittances by health care coverage. As expected, we find that households with some kind of health care coverage – either through their jobs or via participation in PROGRESA – spend less of remittance income increments on health care than households lacking any health care coverage. Hence, remittances may help equalize health care expenditures across households with and without health care coverage.remittances, health care, household expenditures, Mexico

OAI identifier:

Suggested articles


  1. (1983). A Comparison of Alternative Models for the Demand for Medical Care”
  2. (1994). A Model of Migration and Remittances Applied to Western Kenya”
  3. (1957). A Theory of the Consumption Function.
  4. (2005). Ernesto López-Córdova and Alexandra Olmedo.
  5. (1997). Estimating Remittance Functions for Pacific Island Migrants” World Development,
  6. (1985). Generalized Method of Moments Specification
  7. (2004). Globalization, Migration and Development. The Role of Mexican Migrant Remittances.” Mimeo. Inter-American Development Bank.
  8. (2002). Instrumental variables and GMM: Estimation and testing” Working paper no. 545, Department of Economics, Boston College. Available at:
  9. (2001). Instrumental Variables and the Search for Identification: From Supply and Demand to Natural Experiments”
  10. (2003). Introductory Econometrics: A Modern Approach,
  11. (2000). Labour Migration as a Social Security Mechanism for Smallholder Households in Sub-Saharan Africa:
  12. (1984). Let Them Eat Cake: A Note Comparing Alternative Models of the Demand for Medical Care”
  13. (1998). Motives for Private Transfers Over the Life Cycle: An Analytical Framework and Evidence for Peru.”
  14. (1998). Much Ado About Two: Reconsidering Retransformation and the TwoPart Model in Health Econometrics”
  15. (1960). On finite sample distributions of generalized classical linear identifiability test statistics”
  16. (1972). On the Concept of Health Capital and the Demand for Health”
  17. (2002). Public Transfers and Migrants’ Remittances: Evidence from the Recent Armenian Experience.” World Bank Economists’
  18. (1992). Remittances and Inequality Reconsidered: Direct, Indirect,
  19. (2008). Remittances and the household’s expenditures on health,” mimeo, Universidad Autonoma de
  20. (1995). Remittances from International Migration: A Comparison of El Salvador
  21. (1968). Saving and Uncertainty: The Precautionary Demand for Saving.’’
  22. (2008). Seguro Popular at: Stark, Oded.
  23. (2002). Síntesis Ejecutiva: Poblaciones de las Instituciones Prestadoras de Servicios de Salud de Mexico: Definición y Construcción.
  24. (1988). Social Security in a ‘Moral Economy’: An Empirical Analysis for
  25. (1957). Tests of the Life Cycle Hypothesis of Saving,” Bull.
  26. (2004). The Effects of Migration
  27. (1998). The Logged Dependent Variable, Heteroscedasticity, and the Retransformation Problem”,
  28. (2002). The Other Side of the Paradox: The Risk of Low Birth Weight among Infants of Migrant and Nonmigrant Households within
  29. (1997). Transnationalizing Community Development: The Case of Migration Between Boston and the Dominican Republic.” Nonprofit and Voluntary Sector Quarterly,
  30. (1986). Tuberculin Reactivity in United States and Foreign-born Latinos: Results of a Community-based Screening Program”
  31. (2007). Variable Impacts: State-level Analysis of the Slowdown

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.