Remittances, Economic Development and Welfare in Peru

The document assesses the impact of remittances over a set of economic indicators for Peru. The constant growth of this flow of resources over the past two decades motivates this study. We measure the contribution of remittances in three areas: economic growth, poverty and hours worked. We found that the remittances have contributed significantly to the economic growth. Likewise, since migrants are mostly educated (in relative terms), remittances contribute marginally in reducing poverty. Finally, remittances reduce the hours of work.