The Role of Social Capital in the Remittance Decisions of Mexican Migrants from 1969 to 2000

Maggard, Kasey Q.
November 2004
Working Paper Series (Federal Reserve Bank of Atlanta);Nov2004, Vol. 2004 Issue 29, preceding p1
Working Paper
Working Paper
Remittances from migrants in the United States play a major role in the Mexican economy. This paper analyzes the role that different types of social capital play in the remittances decisions of Mexican migrants. Both the decision to remit and the decision on how much to remit are analyzed. The model, based on the idea of enlightened altruism, assumes that the migrant makes his decisions based on his own well-being as well as that of his household in Mexico and his community in Mexico. Social capital is defined as the resources one gains from relationships and networks. Four different types of social capital are identified in this paper: hometown-friendship networks in the United States, family networks in the United States, other-ethnicity-based networks in the United States, and community networks in Mexico. Social capital from friendships proves to be very positively significant in both the decision to remit and how much to remit. However, for all of the observations, familial social capital is not significant in either the decision to remit or how much to remit, although familial social capital has a positive role in both tests. Other-ethnicity-based social capital negatively influences both decisions and is significant in both as well. Social capital in Mexico has a significant negative impact on the two remittance decisions. Beyond social capital, this paper provides insight into other factors that affect remittance decisions including income, bank accounts, proximity to Mexico, exchange rate, interest rate differential, community infrastructure, the number of members in the Mexican household, Mexican household consumption, and time trends. In addition, to investigate time trends further, separate regressions were run on those observations where the last migration took place before 1991 and those whose last migration occurred after 1990.


Related Articles

  • THE CHANGING PROFILE OF MEXICAN MIGRANTS TO THE UNITED STATES: New Evidence from California and Mexico. Marcelli, Enrico A.; Cornelius, Wayne A. // Latin American Research Review;2001, Vol. 36 Issue 3, p105 

    Using recent data from southern California and Mexico, we challenge the notion that the demographic profile of Mexican migrants to the United States since 1970 has remained constant. We find that more recent cohorts of migrants are more likely to settle permanently in the United States, to have...

  • ¿EMIGRAR PARA VOLVER?: DE LA ASIMILACIÓN AL TRANSNACIONALISMO. Rodríguez, Alejandro Méndez // Problemas del Desarrollo. Revista Latinoamericana de Economía;ene-mar2007, Vol. 38 Issue 148, p99 

    The core idea of this paper revolves around movement and change in the process of assimilation of immigrants in the United States and in the conceptual and singular context of trans-border links that emigrants establish with their country of origin, which to some extent grant a particular...

  • Mexicanos deportados desde Estados Unidos: Análisis desde las cifras. MEZA GONZÁLEZ, Liliana // Migraciones Internacionales;jul-dic2014, Vol. 7 Issue 4, p265 

    This article discusses the deportation of Mexican immigrants from the United States during the early 21st century. The author comments on the development and implementation of government policies under President Barack Obama regarding immigration and deportation. The problems associated with the...

  • Other Immigrants: Mexicans and the Dillingham Commission of 1907-1911. BENTON-COHEN, KATHERINE // Journal of American Ethnic History;Winter2011, Vol. 30 Issue 2, p33 

    The article discusses Mexican immigrants in the United States during the early twentieth century and focuses on the views of the U.S. Immigration Commission, also known as the Dillingham Commission. It notes that U.S. officials were more focused on European and Asian immigrants, particularly...

  • Mexican American and Anglo Attitudes toward Immigration Reform: A View from the Border. Binder, Norman E.; Polinard, J. L.; Wrinkle, Robert D. // Social Science Quarterly (University of Texas Press);Jun97, Vol. 78 Issue 2, p324 

    This paper identifies and analyzes factors that influence the views that Mexican Americans and Angles hold toward immigration issues. Methods. The data come from a survey of 756 individuals conducted in two counties along the Texas-Mexico border. These border Counties arc among the poorest in...

  • Always an Immigrant Nation.  // American History;Oct2006, Vol. 41 Issue 4, p19 

    The article discusses the love-hate relationship between the United States and immigrants. The people who complain today that immigrants are taking over the country are indebted to their immigrant ancestors who came before them. Immigrants were charged with taking jobs away from "real" Americans...

  • Migración de personal altamente calificado de México a Estados Unidos: una exploración del fenómeno. Gómez, Roberto Rodríguez // Revista Electrónica de Investigación Educativa;2009, Vol. 11 Issue 2, Special section p1 

    This essay proposes to explore the features of the migration phenomenon of highly-qualified personnel from Mexico to the United States. To this end it analyzes, principally, two sources of information: first, data from the U.S. Census Bureau's ongoing survey of households, the American Community...

  • The Changing Geography of Mexican Immigration to the United States: 1910-1996. Durand, Jorge; Massey, Douglas S.; Charvet, Fernando // Social Science Quarterly (University of Texas Press);Mar2000, Vol. 81 Issue 1, p1 

    We seek to describe trends in the geographic destination of Mexican immigrants to the United States. Methods. Using the Integrated Public Use Microdata Samples for 1910-90 and the 1996 Current Population Survey, we tabulate the distribution of all foreign-born Mexicans and recent Mexican...

  • The Healthy Migrant Effect: New Findings From the Mexican Family Life Survey. Rubalcava, Luis N.; Teruel, Graciela M.; Thomas, Duncan; Goldman, Noreen // American Journal of Public Health;Jan2008, Vol. 98 Issue 1, p78 

    Objectives. We used nationally representative longitudinal data from the Mexican Family Life Survey to determine whether recent migrants from Mexico to the United States are healthier than other Mexicans. Previous research has provided little scientific evidence that tests the "healthy migrant"...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics