Optimism in Times of Crisis

Abstract

Using a variety of survey datasets, this chapter explores the impact of remittances in fifty Latin American, Caribbean, Middle Eastern, North African, and sub-Saharan African countries. The first part of this chapter provides an overview of trends in the flow of migrants and remittances throughout these developing regions. The remainder of the chapter uses survey data to analyze the effects of remittances on economic grievances during the global food and financial crises that struck many economies between 2008 and 2011. The results indicate that remittances are strongly associated with feelings of economic security and optimism. Remittance recipients are less likely to describe their personal economic circumstances or national economic conditions negatively. They are furthermore less likely to predict that their personal economic circumstances or the national economic conditions will deteriorate in the future.