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Immigration Policy Spotlight
August 2007
Last updated February 15, 2008
Inter-American Development Bank Study Shows Remittances Slowing

A new study commissioned by the Inter-American Development Bank (IDB), shows that the percentage of Mexican immigrant adults sending remittances to Mexico has decreased significantly, especially in U.S. states that have only recently seen an increase in immigrant populations in their communities-commonly referred to as "new arrival areas." The study surveyed Mexican and Central American immigrants including U.S. citizens, legal residents, and undocumented immigrants.

In a recent New York Times article, IDB attributes the decrease to uncertainty within the Mexican population about their future. Instead of sending their money home, Mexican immigrants in "new arrival areas" are saving their earnings. The study shows that of the Mexican immigrants in these states, only 49% think that they will be living in the U.S. five years from now. According to the Miami pollster who conducted the survey, Sergio Bendixen, the percentage of Mexican immigrants considering returning to Mexico is much higher than it has been in the past.

Bendixen also thinks it's because immigrants in these "new arrival areas" do not feel welcome in the U.S. In another recent article by the McClatchy Newspaper, he says "What I have found is both ugly and sad. There are millions of Latin American immigrants, especially those living in the deep South and upper Midwest, whose lives have been made miserable by the anti-immigrant sentiment that is now so prevalent in so many geographic areas." The study shows that the overwhelming majority of Mexican immigrants, 83 percent, say that discrimination against immigrants is growing in the U.S.

Over 80% of both Mexican and Central American immigrants also responded that it's tougher for Latin American immigrants to find a well paying job in the U.S. now than it was a year ago. If immigrant populations do start leaving these "new arrival areas" or even the traditional states, would it be disruptive to local economies? According to the study's executive summary, "the potential economic impact on localities within the United States that have come to depend on immigrant labor is not yet fully understood. As a result, the IDB intends to commission another survey early in 2008 that would build upon the data from this study..."



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