Contribution of remittances to Mexican household income and healthcare

Abstract

The article aims to analyze the participation of remittances in household income in Mexico in 2018 and 2020 and their role in healthcare during the pandemic by COVID-19. First, it examines the variation in the share of remittances in the income of Mexican households before and during the pandemic. Then, it analyzes the use of remittances in spending on health care. The statistical overview of household income and expenditure in the country is described with national survey data. Examining remittance dynamics in Mexican household incomes before and during the pandemic provides a valuable understanding of their relationship to healthcare. The results suggest that the increase in remittances was due to the weakening of other sources of income because of the economic contraction caused by the health crisis. In addition, these resources were used, to a considerable extent, to cover health and funeral expenses, which represented unexpected expenditures for households.