Remittances and social stratification in Paraguay: dynamic of the reception of remittances from the south and the north
Keywords:
Remittances, Paraguay, Stratifi cation, Self-selection.Abstract
The new and historical patterns of migration in Paraguay cause a current strong increase in the reception of international remittances. In this context, The question about the effects of remittances in different aspects of the social organization arises. This article analyses the importance of international remittances and the characteristics of recipient households in Paraguay. We perform principal component analysis method to construct a socioeconomic index to study the relationship between international remittances and socioeconomic levels. The main results highlight the importance of international remittances
for the households’ economy and dynamics of self-selection
between certain households with the North (Spain and USA) and
others with the South (Argentina and Brazil).
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