The distributional impacts of the reduction in remittances in Central America in COVID-19 times.

COVID-19 has generated several quarantines and economic lockdowns as the main public policy responses that dramatically affected the dynamic of economic growth and labor markets worldwide. These effects impact remittance inflows to developing countries, in particular those coming from the US, which affect poverty reduction paths in Latin America. Using data from the US labor market and economic performance indicators of the US and remittance recipient countries, this paper estimates the distributional impacts of the change in remittances post-COVID-19 for the region that most rely on remittances, Central America.