Previous studies have showed that family remittances have a negative effect on the labor supply from the members of households who get that extra source of money. So far, there has been little analysis about the actual effect of collective remittances on the labor market. Collective remittances sent by migrants’ clubs and used for investment in social and productive projects in their municipalities of origin are relatively new phenomena in the migration literature. Its increasing importance is attributed to the apparent positive links with economic development. A unique program in Mexico, 3x1 Para Migrantes, tries to take advantage of this kind of social capital: government funds are matched with collective remittances and invested in community projects. A potential effect of the program is that the amenities and job opportunities generated by these projects may change the preferences to migrate or to stay and work in the municipality. Using the database from the evaluation of this program, I study the effect of collective remittances on the probability of being employed, on the probability of being in the labor force, and on the amount of hours worked of employed males in 2002 and 2005 in Mexico. Collective remittances, measured as the per capita investment through the 3x1 Program, have a positive impact on the employment and labor force participation in Mexican municipalities, but a null effect on the preferences to migrate, at least in the short run. However, collective remittances may have ambiguous effects depending on the type of projects that have been carried out in a given municipality.