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“To Have and Have Not”: Migration, Remittances, Poverty and Inequality in Algeria

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  • Mouhoud, El Mouhoub
  • Margolis, David
  • Miotti, Luis
  • Oudinet, Joël

Abstract

This article analyses the distributional impact of international migration across two regions of Algerian emigration (Nedroma and Idjeur) using an original survey we conducted of 1,200 households in 2011. The non-parametric technique of DiNardo, Fortin and Lemieux (1996) is used to analyse the effects of remittances on the distribution of household incomes. The analysis is then deepened with a parametric model, which allows for the estimation of counterfactual household income and the calculation of the impact of migration on the distribution of household income. Remittances, and especially foreign pensions, decrease the Gini index by nearly 4 % for the two Algerian regions combined, with the effect in Idjeur being twice as large as Nedroma. At the same time, they help reduce poverty by nearly 13 percentage points. Remittances have a strong positive impact on very poor families in Idjeur but much less in Nedroma, where poor families suffer from a “double loss” due to the absence of their migrants and the fact that the latter do not send money home.

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Bibliographic Info

Paper provided by Paris Dauphine University in its series Economics Papers from University Paris Dauphine with number 123456789/12589.

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Date of creation: Jan 2014
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Publication status: Published in DIAL Document de travail, 2014
Handle: RePEc:dau:papers:123456789/12589

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Keywords: Transferts de fonds; Migration; Inégalités; Pauvreté; Algérie; Remittances; Migration; Poverty; Inequality; Algeria;

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  1. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
  2. Dinardo, J. & Fortin, N.M. & Lemieux, T., 1994. "Labor Market Institutions and the Distribution of Wages, 1973-1992: a Semiparametric Approach," Cahiers de recherche 9406, Universite de Montreal, Departement de sciences economiques.
  3. John Chiwuzulum Odozi & Timothy Taiwo Awoyemi & Bolarin Titus Omonona, 2010. "Household poverty and inequality: the implication of migrants' remittances in Nigeria," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 13(2), pages 191-199.
  4. Richard P.C. Brown & Eliana Jimenez, 2008. "Estimating the net effects of migration and remittances on poverty and inequality: comparison of Fiji and Tonga," Journal of International Development, John Wiley & Sons, Ltd., vol. 20(4), pages 547-571.
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  6. David Mckenzie & Hillel Rapoport, 2004. "Network Effects and the Dynamics of Migration and Inequality: Theory and Evidence from Mexico," Working Papers 2004-3, Department of Economics, Bar-Ilan University.
  7. Flore Gubert & Thomas Lassourd & Sandrine Mesplé-Somps, 2010. "Transferts de fonds des migrants, pauvreté et inégalités au Mali. Analyse à partir de trois scénarios contrefactuels," Revue économique, Presses de Sciences-Po, vol. 61(6), pages 1023-1050.
  8. Adams, Richard Jr. & Page, John, 2005. "Do international migration and remittances reduce poverty in developing countries?," World Development, Elsevier, vol. 33(10), pages 1645-1669, October.
  9. Acosta, Pablo & Calderon, Cesar & Fajnzylber, Pablo & Lopez, Humberto, 2008. "What is the Impact of International Remittances on Poverty and Inequality in Latin America?," World Development, Elsevier, vol. 36(1), pages 89-114, January.
  10. Stark, Oded & Taylor, J Edward & Yitzhaki, Shlomo, 1986. "Remittances and Inequality," Economic Journal, Royal Economic Society, vol. 96(383), pages 722-40, September.
  11. John Chiwuzulum Odozi & Timothy Taiwo Awoyemi & Bolarin Titus Omonona, 2010. "Household poverty and inequality: the implication of migrants' remittances in Nigeria," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 13(2), pages 191-199.
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