This paper assesses the effect of external shocks on households’ income from a regional
perspective. External shocks are measured interacting economic growth in migrant-recipient
countries and region-specific migration flows. Effects are estimated using difference-indifference
models in a sample of household surveys from 2007 to 2015. Results show that
growth periods in migrant-recipient countries have positive effects on income in highmigration
regions, which mostly results from increasing remittances. Most gains come from
labor income in households without remittances, which indicates that remittances generate
significant positive externalities. Effects on health coverage, school attendance, and child labor
tend to be smaller and vary by country.