Table 8 Variable names and definition

Human capital investment

  Educational investments

Expenditures on primary, secondary and higher education, educational services (tutoring, boarding, transportation to school, etc.), and educational goods (books, school items, repair of school items, etc.).

  Health investments

All health related expenditures, including medicines with and without a prescription, glasses, etc., but excluding health insurance.

Physical capital investment

  Real estate investments (i.e. housing, land, etc.)

Real estate purchases, mortgage payments, and maintenance and repair of property.

  Business investments (i.e. micro-enterprises)

Business investments and business related purchases, e.g. machinery, tools, livestock, etc.

  Purchase of durable assets

Purchase of home related durable assets, such as a washing machine, refrigerator or a television.

Financial investment

  Financial investments (e.g. bank deposits, stock, etc.)

Deposits in bank accounts; loans to third parties; purchase of foreign currency, jewelry, art and alike valuables; purchase of stock, bonds and financial assets; purchase of brand names, patents, and author rights.

Dependent variable

Share of expenditures on Human, Physical and Financial Assets

(Educational Investments + Health Investments + Real Estate Investments + Business Investments + Financial Investments + Purchase of Durable Assets)/total household expenditures over the past quarter.

Independent variables:

Uncertainty in remittance income

Coefficient of variation of remittance income over the past six months.

Remittance income (in 1,000 pesos)

Gifts and donations from abroad during the past six months.

HH Income excluding remittances (in 1,000 pesos)

All household income excluding gifts and donations from abroad (e.g. income from work, own businesses, coops, rents from real estate and financial assets, income transfers, and other sources of income, such as revenues from selling a car or household goods) during the past six months.

Uncertainty in HH income excluding remittances

Coefficient of variation of household income excluding remittances over the past six months.

Female headed HH

Household head is female.

Number of young children in the HH

Number of household members 6 years old and younger.

Number of elderly HH members

Number of household members 65 years of age and older.

Number of HH members with high school or above

Number of household members with university and higher education (i.e. superior and posgrado).

Number of HH members with middle school

Number of household members with secondary education or vocational training (i.e. secundaria, preparatoria, vocacional and normal).

Number of HH members employed

Number of household members employed.

Household size

Household size.

Rural household

Household resides in an area with fewer than 2,500 inhabitants.

U.S. unemployment rate volatility

Weighted average of standard deviation of monthly unemployment rates. Weights reflect the incidence of migration from the Mexican state in question to U.S. destinations.

U.S. earnings volatility

Standard deviation of weekly earnings in U.S. states that are destinations for Mexican emigrants. Weights reflect the incidence of migration from the Mexican state in question to U.S. destinations.