The great global redistributor we never hear about: money sent or brought back by migrants
Every year, Carlos Hernández Mejía, a 35-year-old research scientist in Amsterdam, sends 3,000 to 4,000 euros to help maintain his mother’s house in Mexico. During the pandemic, he also helped his brother, sending 300 euros a month to cover rent while he was studying.
Carlos is one of 200 million migrants who regularly send back money to support their families and communities. 1 These cash transfers reach around 800 million people globally — more than the populations of the United States and the European Union combined.
Imagine a classroom of 30 students representing the world’s population; at least three would get money from remittances — one in ten people.
These payments have quietly become a major force in helping families pay school fees, make repairs to their homes, and cover medical bills.
The World Bank estimates that money sent back by migrants constitutes around two-thirds of what is called “remittances” in global statistics. 2 The rest comes from border, seasonal, and other short-term jobs abroad or work with non-resident employers, such as embassies and international organizations.
