The effect of remittance reception in violence.

An approximation for the case of Mexico

Abstract

We analyze the effect of the reception of remittances on violence (approximated by the homicide mortality rate). The relevance of the study lies in the research of two phenomena with high impact on Mexico’s society and economy. We used a linear regression model with instrumental variables. At the municipal level we found a high and positive correlation between the homicide rate and the percentage of households that receive remittances, although this relationship does not extend throughout the whole territory. In general, the reception of remittances had a significant effect in the increase of violence.