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Estimating the net effects of migration and remittances on poverty and inequality: comparison of Fiji and Tonga

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  • Richard P.C. Brown

    (School of Economics, University of Queensland, Brisbane, Australia)

  • Eliana Jimenez

    (School of Economics, University of Queensland, Brisbane, Australia)

Abstract

We use original 2005 household survey data from Fiji and Tonga to estimate the impact of migration and remittances on income distribution and measures of poverty. Measures of inequality and poverty based on observed, with-migration income and remittances are then compared with those based on two without-migration and remittances scenarios; one in which remittances are treated simplistically as an exogenous addition to household income, and another in which counterfactual household incomes are estimated, taking account of what the migrant members would have earned had they not migrated. The estimated effects of remittances on poverty alleviation were found to be stronger when the more rigorous, counterfactual income estimates are used, but their effect on income inequality was found to be ambiguous. The extent to which migration and remittances alleviate poverty was also found to be more substantial in Tonga, the country with a much longer migration history and higher remittance dependence. Copyright © 2008 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/jid.1474
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Bibliographic Info

Article provided by John Wiley & Sons, Ltd. in its journal Journal of International Development.

Volume (Year): 20 (2008)
Issue (Month): 4 ()
Pages: 547-571

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Handle: RePEc:wly:jintdv:v:20:y:2008:i:4:p:547-571

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Web page: http://www3.interscience.wiley.com/journal/5102/home

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  1. Adams, Richard H, Jr, 1989. "Worker Remittances and Inequality in Rural Egypt," Economic Development and Cultural Change, University of Chicago Press, vol. 38(1), pages 45-71, October.
  2. Hagenaars, Aldi J M & van Praag, Bernard M S, 1985. "A Synthesis of Poverty Line Definitions," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 31(2), pages 139-54, June.
  3. Stark, Oded & Levhari, David, 1982. "On Migration and Risk in LDCs," Economic Development and Cultural Change, University of Chicago Press, vol. 31(1), pages 191-96, October.
  4. Ravallion, M., 1998. "Poverty Lines in Theory and Practice," Papers 133, World Bank - Living Standards Measurement.
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Cited by:
  1. Chakra P. Acharya & Roberto Leon-Gonzalez, 2012. "The Impact of Remittance on Poverty and Inequality: A Micro-Simulation Study for Nepal," GRIPS Discussion Papers 11-26, National Graduate Institute for Policy Studies.
  2. Moises Neil V. Serino & Donghun Kim, 2011. "How Do International Remittances Affect Poverty In Developing Countries? A Quantile Regression Analysis," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 36(4), pages 17-40, December.
  3. Yaw Nyarko & Kwabena Gyimah-Brempon, 2011. "Social Safety Nets: The Role of Education, Remittances and Migration," RSCAS Working Papers 2011/26, European University Institute.
  4. Jamal BOUOIYOUR & Amal MIFTAH, 2014. "The Effects of Remittances on Poverty and Inequality: Evidence from Rural Southern Morocco," Working Papers 2013-2014_14, CATT - UPPA - Université de Pau et des Pays de l'Adour, revised May 2014.
  5. Ilan Kelman, 2010. "Introduction to climate, disasters and international development," Journal of International Development, John Wiley & Sons, Ltd., vol. 22(2), pages 208-217.
  6. Miftah, Amal & Bouoiyour, Jamal, 2014. "The impact of Migrant Workers ' Remittances on the Living Standards of families in Morocco: a Propensity Score Matching Approach," Economics Papers from University Paris Dauphine 123456789/12802, Paris Dauphine University.
  7. Laetitia Duval & François-Charles Wolff, 2013. "The consumption-enhancing effect of remittances: Evidence from Kosovo," wiiw Balkan Observatory Working Papers 107, The Vienna Institute for International Economic Studies, wiiw.
  8. Margolis, David N. & Miotti, Luis & Mouhoud, El Mouhoub & Oudinet, Joël, 2013. ""To Have and Have Not": Migration, Remittances, Poverty and Inequality in Algeria," IZA Discussion Papers 7747, Institute for the Study of Labor (IZA).
  9. Randall Akee, Devesh Kapur, 2012. "Remittances and Rashomon- Working Paper 285," Working Papers 285, Center for Global Development.
  10. Beyene, Berhe Mekonnen, 2012. "The Effects of International Remittances on Poverty and Inequality in Ethiopia," Memorandum 13/2012, Oslo University, Department of Economics.
  11. Richard Brown & Gareth Leeves & Prabha Prayaga, 2012. "An analysis of recent survey data on the remittances of Pacific island migrants in Australia," Discussion Papers Series 457, School of Economics, University of Queensland, Australia.

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