Consumption and Remittances in Migrant Households: Toward a Productive Use of Remittances

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This article reviews the magnitude of remittance flows into Mexican households and examines the consumption patterns of remittance‐receiving households. A thorough understanding of the dynamics of remittances and consumption in migrant households in Mexico should inform policy makers of the best ways to channel these resources into productive uses. The Mexican Income and Expenditure Survey for 1989 is used to compare and test patterns of consumption and uses of remittances in urban and rural Mexico. (JEL F2–F22, O1–O15)