Remittances in El Salvador

Via Tim’s El Salvador Blog: an interesting article on the effects of remittances. Especially because of the 1980s civil war, about ¼ of Salvadorans live in the U.S. and send money home, to the tune of a whopping 16.6% of GDP. This in turn creates an incentive for recipients not to accept low paying jobs. To fill these jobs, more Nicaraguans and Hondurans are entering the country, almost entirely illegally. Meanwhile, economic growth in El Salvador in 2005 was the lowest in Central America.