Can Migration Foster Development in Mexico? The Case of Poverty and Inequality

The impact of migration on development can be analysed from a number of perspectives. This article focuses on poverty and inequality. It assesses the relative contribution of migrants to Mexico's economy through remittances, compared to other Latin American countries; analyses the distributional impact of remittances (with an emphasis on the poor), and compares this impact to the counterfactual impact of migrants' stay-at-home income. It explains the processes leading to scant economic success rates among poor international migrants. Finally, it describes the nature and impact of current Mexican migrant-oriented policies, and recommends a shift in focus, to lessen emigration, increase the income of migrants, promote returns, and bolster the economic impact of returning migrants.