Choques externos y remesas internacionales en las regiones de Colombia

This paper assesses the effect of external shocks on household income from a regional perspective. External shocks are measured interacting economic growth in migrant-recipient countries and region-specific migration flows. Effects are estimated using difference-in-difference models in a sample of household surveys from 2007 to 2015. Results show that positive growth periods in migrant-recipient countries have positive effects on income in high-migration regions, which is largely explained by increasing remittances. Most gains come from labour income in households without remittances, which indicates that remittances generate significant positive externalities. Effects on health coverage, school attendance, and child labour tend to be smaller and vary by country.