The role of remittances in the household's economies: the case of Mexico

Alejandro I. Canales, Universidad de Guadalajara
Israel Montiel Armas, Universidad de Guadalajara

The proposal of this paper focuses on the analysis of the role of remittances in the households’ economic behaviour, analyzing whereas the households that receive remittances have got a significantly different economic behaviour than the other ones. In case this was true, we would analyze which is the economic sense of these differences, and which effects they have got on the drawing of the household’s economic patterns. Regarding this role of remittances, we can distinguish the households’ economic behaviour according to two dimensions. First, according to the living standards and the material and economic resources that the households have got to face the precariousness and poverty. And on the other hand, according to their chances to invest in three levels: human capital formation, enlarging of the economic capital and lastly, consolidation of its social capital.