This paper considers the effect of remittances on the share of health expenditures
in total household expenditure in Mexico. The main purpose of this paper
is to investigate if remittances are especially targeted towards household's health
expenditure in Mexico. Using IV Tobit and regression models we find a statistically
significant effect of remittances on the household health expenditures shares. This
effect is even more pronounced for households without access to the employment's
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