Remittances and inequality: a dynamic migration model
AbstractWe develop a model of the interdependencies between migration, remittances and inequality, and investigate how migration and subsequent remittances affect inter-household inequality in the origin communities. An important feature of our model is that we take into account the impact of migration on the local (rural) labor market. Migration is shown to decrease wealth inequality but may generate higher income inequality. Moreover, the short-run and long-run impacts of migration on income inequality may also be of opposite signs, suggesting that the dynamic relationship between migration and inequality may well be characterized by an inverse U-shaped pattern. This is consistent with the findings of the empirical literature on remittances and inequality, but offers a different interpretation, with no need to endogenize migration costs through the role of migrant networks.
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Bibliographic InfoArticle provided by Springer in its journal The Journal of Economic Inequality.
Volume (Year): 8 (2010)
Issue (Month): 2 (June)
Contact details of provider:
Web page: http://springerlink.metapress.com/link.asp?id=111137
Inequality; Migration; Remittances;
Other versions of this item:
- Frederic, DOCQUIER & Hillel, RAPOPORT & I-Leng Shen, 2007. "Remittances and inequality : A dynamic migration model," Discussion Papers (ECON - DÃ©partement des Sciences Economiques) 2007003, Université catholique de Louvain, Département des Sciences Economiques.
- Frederic Docquier & Hillel Rapoport & I-Ling Shen, 2006. "Remittances and inequality: A dynamic migration model," CReAM Discussion Paper Series 0614, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
- Docquier, Frédéric & Rapoport, Hillel, 2003. "Remittances and Inequality: A Dynamic Migration Model," IZA Discussion Papers 808, Institute for the Study of Labor (IZA).
- Frédéric Docquier & Hillel Rapoport, 2003. "Remittances and Inequality: A Dynamic Migration Model," Working Papers 2003-05, Department of Economics, Bar-Ilan University.
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
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