A regional analysis of the impact of remittances on health expenditures: evidence from Mexico

Abstract Using a quasi-experimental technique and data from the 2020 National Household Income and Expenditure Survey, we not only provide evidence that both internal and international remittances have a positive impact on various categories of health expenditures in Mexican households, but also highlight regionally heterogeneous effects. International remittances have a larger impact at the household level, whereas internal remittances impact a greater number of households. In western Mexico, with its long-standing international migratory tradition, remittances from abroad have more pronounced impacts. Internal remittances are more relevant in the poorer south-southeast, a region known for having inadequate access to healthcare services. These findings are associated with structural socioeconomic disparities that characterize Mexico, and are also linked to whether the additional income is perceived permanent or transitory.