Journal Title
Title of Journal: Rev Econ Household
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Abbravation: Review of Economics of the Household
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Authors: Catalina AmuedoDorantes Susan Pozo
Publish Date: 2009/12/10
Volume: 9, Issue: 1, Pages: 69-98
Abstract
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 their sensitivity to changes in other sources of household income Furthermore health care expenditures are less responsive to remittance income among lowerincome households Since the lower responsiveness may be partially due to participation of lowerincome 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
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