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Remittances, Inequality and Poverty: Evidence from Rural Mexico

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  • Taylor, J. Edward
  • Mora, Jorge
  • Adams, Richard H., Jr.
  • Lopez-Feldman, Alejandro

Abstract

Economic research has produced conflicting findings on the distributional impacts of migrant remittances, and there has been little research on the effects of changes in remittances on poverty. This paper utilizes new data from the Mexico National Rural Household Survey, together with inequality and poverty decomposition techniques, to explore the impacts of remittances on rural inequality and poverty. Our findings suggest that remittances from international migrants become more equalizing (or less unequalizing), as well as more effective at reducing poverty, as the prevalence of migration increases.

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Bibliographic Info

Paper provided by University of California, Davis, Department of Agricultural and Resource Economics in its series Working Papers with number 60287.

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Date of creation: 01 Jul 2005
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Handle: RePEc:ags:ucdavw:60287

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Keywords: Migration; Remittances; Inequality; Poverty; Mexico; Food Security and Poverty; International Development;

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References

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  1. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
  2. Stark, Oded & Taylor, J Edward & Yitzhaki, Shlomo, 1986. "Remittances and Inequality," Economic Journal, Royal Economic Society, vol. 96(383), pages 722-40, September.
  3. Adams, Richard H. Jr. & Alderman, Harold, 1992. "Sources of income inequality in rural Pakistan : a decomposition analysis," Policy Research Working Paper Series 836, The World Bank.
  4. Lucas, Robert E B & Stark, Oded, 1985. "Motivations to Remit: Evidence from Botswana," Journal of Political Economy, University of Chicago Press, vol. 93(5), pages 901-18, October.
  5. Manishi Prasad & Peter Wahlqvist & Rich Shikiar & Ya-Chen Tina Shih, 2004. "A," PharmacoEconomics, Springer Healthcare | Adis, vol. 22(4), pages 225-244.
  6. J. Edward Taylor & Scott Rozelle & Alan deBrauw, 1999. "Migration, Remittances, and Agricultural Productivity in China," American Economic Review, American Economic Association, vol. 89(2), pages 287-291, May.
  7. Knowles, James C. & Anker, Richard, 1981. "An analysis of income transfers in a developing country : The case of Kenya," Journal of Development Economics, Elsevier, vol. 8(2), pages 205-226, April.
  8. Taylor, J Edward & Rozelle, Scott & de Brauw, Alan, 2003. "Migration and Incomes in Source Communities: A New Economics of Migration Perspective from China," Economic Development and Cultural Change, University of Chicago Press, vol. 52(1), pages 75-101, October.
  9. Lucas, Robert E B, 1987. "Emigration to South Africa's Mines," American Economic Review, American Economic Association, vol. 77(3), pages 313-30, June.
  10. Adams, Richard H. Jr., 2004. "Remittances and poverty in Guatemala," Policy Research Working Paper Series 3418, The World Bank.
  11. Lerman, Robert I & Yitzhaki, Shlomo, 1985. "Income Inequality Effects by Income," The Review of Economics and Statistics, MIT Press, vol. 67(1), pages 151-56, February.
  12. Barham, Bradford & Boucher, Stephen, 1998. "Migration, remittances, and inequality: estimating the net effects of migration on income distribution," Journal of Development Economics, Elsevier, vol. 55(2), pages 307-331, April.
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