Has the Pandemic Reduced U.S. Remittances Going to Latin America?
Abstract: Workers' remittances—funds that migrants send to their country of birth—are an important source of income for a number of economies in Latin America, with the bulk of these funds coming from the United States. Have these flows dried up, given the COVID-19 recession and resulting unprecedented job losses? We find that remittances initially faltered but rebounded in the summer months, performing better than during the last U.S. recession despite more severe job losses. Large government income support payments probably explain some of this resilience. Whether remittances continue to hold up is likely to depend on how quickly the U.S. job market recovers, particularly in hard-hit service industries.
JEL Classification: F00;
File format is text/html
Description: Full text
Provider: Federal Reserve Bank of New York
Part of Series: Liberty Street Economics
Publication Date: 2020-11-09