Remittance Receivers as Targets for Corruption in Latin America

Abstract

Migration can affect the practice of corruption in migrant-sending countries in a number of ways. In this paper we test whether or not remittance receiving households are more likely to be targeted for corruption. Using micro-level data from 20 Latin American countries, this study finds that migrant households are about 15 percentage points more likely to be asked for a bribe than non-migrant-sending households. The corruption effect is further confirmed by an instrumental variable estimation. Our findings suggest that remittances can have an unintended effect on households’ risk of experiencing corruption. The excess exposure may discourage remittances and limit the positive development benefits of migration and remittances.