Remittance income uncertainty and asset accumulation

IZA Journal of Labor & Development

Table 6 Two part model for share of households’ expenditures on human, physical and financial assets

Variables	First part				Second part
Variables	Coefficient	Robust S.E.	M.E. on Prob (Y > 0)	Robust S.E.	Coefficient/M.E. on E(Y\|Y > 0)	Robust S.E.
HH remittance income (1,000 pesos)	0.011***	0.001	0.003***	3.1E-04	0.010***	0.001
Remittance income volatility	0.085***	0.015	0.020***	0.004	0.047***	0.017
Female headed HH	−0.015	0.010	−0.003	0.002	0.000	0.012
Number of young children in the HH	0.010	0.006	0.002	0.002	−0.032***	0.006
Number of elderly HH members	−0.099***	0.007	−0.023***	0.002	−0.029***	0.007
Number of HH members with high school or above	0.104***	0.006	0.025***	0.001	−0.022	0.019
Number of HH members with middle school	0.071***	0.004	0.017***	0.001	0.013	0.008
Number of HH members employed	−0.012***	0.005	−0.003***	0.001	−0.036***	0.007
HH Income excluding remittances (in 1,000 pesos)	0.002***	1.5E-04	0.001***	4.0E-05	0.001***	1.9E-04
Uncertainty of HH income excluding remittances	0.008	0.011	0.002	0.003	0.120***	0.030
Household size	0.051***	0.003	0.012***	0.001	0.032***	0.005
Rural household	−0.121***	0.010	−0.029***	0.003	0.088***	0.024
Year fixed-effects	Yes				Yes
Mexican state fixed-effects	Yes				Yes
Mexican state-level time trends	Yes				Yes
Observations:	159,523				125,992
Significance	Wald Chi2 = 31,481.19 with Prob > Chi2 = 0.000				R-squared = 0.112

Notes: ***Significant at the 1 percent level or better. All regressions include a constant term. Standard errors are clustered at the Mexican state level. Marginal effects are evaluated at the mean.