To Send or Not to Send: Migrant Remittances in Puerto Rico, the Dominican Republic, and Mexico

Abstract

Despite their high out-migration rate, Puerto Ricans in the United States send less money than Dominicans and Mexicans to their relatives back home. One explanation for the low level of private transfers of Puerto Ricans is that public disbursements, especially for nutritional assistance, housing subsidies, and educational grants, may well be the safety net in Puerto Rico that remittances serve in other countries. In addition, most Puerto Ricans are covered by unemployment and disability insurance, and many have earned benefits such as Social Security, Medicare, and veterans pensions. Finally, Puerto Rico’s higher standard of living, compared to other Latin American countries, may mean that many migrants do not feel as obliged to send money to their country of origin as Mexicans or Dominicans do. The broader implications of remittances for understanding the transnational ties between Puerto Ricans on and off the island are examined and compared with the other two groups.