Resilient Remittances? Examining Immigrant Remittances from the United States to Latin America During Covid-19

The onset of the Covid-19 pandemic prompted projections of economic contraction and a resulting decline in immigrant remittances, which are fundamental to many migrant household survival strategies. However, in the first year of the pandemic, remittances from the United States to Mexico and other Latin American countries remained surprisingly stable. Using novel survey and interview data, we investigate this apparent divergence, and the dynamic familial networks that sustained remittances during the first year of Covid-19. We identify patterns masked by the overall macro trend of resilient remittance flows, including heterogeneity across remitters' responses to the pandemic and household-level strain of remitting during this period. Specifically, we find evidence of an intensified expanded remittance pool, wherein remittance responsibility spread across household and extended family members-especially US citizens, authorized immigrants, and those who were more financially stable-in response to job loss and income instability within remitting households. During a period of extreme hardship, the continued need for remittances among nonmigrant family members contributed to the purposive intensification of these expanded pools. Our study of immigrant remittances during Covid-19 demonstrates the utility of examining complexity, change, and oftentimes strain at the micro-household level that undergirds apparent stability at a macro-level of analysis.

Automated summary

The Covid-19 pandemic did not have as much impact on immigrant remittances as expected, as remitting households maintained stability through cooperation among family and extended family members, especially with support from US citizens, authorized immigrants, and financially stable individuals.