Financial remittances, trans-border conversations, and the state

Abstract

How does the reception of remittances change the views of those left behind? In this paper, we compare the impact of financial remittances (transmission of money) with the impact of social remittances (transmission of ideas and values) on preferences about the role of the state in the economy (in particular, the role of the state in creating jobs, reducing inequality, and securing citizens’ well-being). Using data from the Latin American Public Opinion Project (2008–2010), we find that social learning via cross-border communication is positively associated with preference for an enhanced role of the state.