Romano, Mary Kate. The impact of migrant remittances on economic and social welfare in municipalities of El Salvador. Retrieved from https://doi.org/doi:10.7282/T3542NSZ
DescriptionIn order expand the body of knowledge on the impacts of international migration on developing nations, this dissertation examines the effects of transnational migration and migrant remittances on communities in El Salvador. The effects of migration on the migrant-sending country can be dramatic on both a macro and microeconomic level, which create serious challenges for governments, communities and families. As one of the world economies most heavily dependant on remittances from the United States and also a country whose most vital export has become its human capital in the form of migrants, this study of El Salvador can serve as a case study to be applied to illustrate the potential situations and opportunities in other nations. Data from the 2004 national census and from a 2005 UNDP study were used to construct several regression models to determine the incremental impact of migrant remittances on poverty, health, education level attained, workforce participation, life expectancy, crime and gender roles in households across El Salvador. The results revealed that the dollar amount of remittances has a statistically significant positive relationship with a number of quality of life variables, such as reduced unemployment in households, higher average grade level and higher life expectancy; however, this variable was also correlated with increased cases of malnourishment in children. A similar variable, the percent of people receiving remittances, which represents penetration of migrant remittances throughout communities, had a statistically significant inverse relationship with several of the same quality of life variables, such as lower average grade level, lower levels of malnourishment and decreased life expectancy. The reasons for these differences are examined, including the possibility that while dollar amount of remittances may ease financial constraints and improve certain conditions for households, the psychological effects of widespread migration may exert a different and sometimes opposite effect. A review of relevant research determined that while globally there have been attempts at policy shifts towards channeling remittances into more productive, the majority of remittance income is spent on immediate consumption, which presents opportunities for intervention by both the public and private sector to encourage more sustainable use of remittances.