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Do remittances affect poverty and inequality? Evidence from Mali

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  • Flore Gubert

    ()
    (IRD, UMR 225 DIAL, Université Paris Dauphine,Paris School of Economics)

  • Thomas Lassourd

    ()
    (DIFID)

  • Sandrine Mesplé-Somps

    ()
    (IRD, UMR 225 DIAL, Université Paris Dauphine)

Abstract

Using a 2006 household survey in Mali, we compare current poverty rates and inequality levels with counterfactual ones in the absence of migration and remittances. With proper hypotheses on migrants and a selection model, we are able to impute a counterfactual income for households currently receiving remittances. We show that remittances reduce poverty rates by 5% to 11% and the Gini coefficient by about 5%. Households in the bottom quintiles are more dependent on remittances, which are less substitutable by additional workforce.________________________________ Cet article examine l’impact distributif des transferts des migrants au Mali, à partir de l’enquête sur les niveaux de vie ELIM 2006. Nous construisons différents scénarii contrefactuels qui corrigent du biais de sélection des ménages avec migrants. Nous montrons que les transferts des migrants internationaux réduisent la pauvreté de 5 à 11% au niveau national et l’indice de Gini d’environ 5%. Les niveaux de consommation des ménages appartenant aux quintiles les plus pauvres sont plus dépendants des transferts, ménages dont les revenus de substitution aux transferts restent faibles du fait de dotations en capital physique et humain insuffisants.

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Bibliographic Info

Paper provided by DIAL (Développement, Institutions et Mondialisation) in its series Working Papers with number DT/2010/08.

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Length: 26 pages
Date of creation: Jul 2010
Date of revision:
Handle: RePEc:dia:wpaper:dt201008

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Keywords: Remittances; Migration; Poverty; Inequality; Africa; Transferts; Migration; Pauvreté; Inégalité; Afrique.;

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References

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  1. Jean-Pierre Lachaud, 1999. "Envoi de fonds, inégalité et pauvreté au Burkina Faso," Documents de travail, Groupe d'Economie du Développement de l'Université Montesquieu Bordeaux IV 40, Groupe d'Economie du Développement de l'Université Montesquieu Bordeaux IV.
  2. Azam, Jean-Paul & Gubert, Flore, 2005. "Those in Kayes. The impact of remittances on the recipients in Africa," Economics Papers from University Paris Dauphine 123456789/4571, Paris Dauphine University.
  3. Yoko NIIMI & Caglar OZDEN & Maurice SCHIFF, 2010. "Remittances and the Brain Drain: Skilled Migrants Do Remit Less," Annales d'Economie et de Statistique, ENSAE, issue 97-98, pages 123-141.
  4. Barham, Bradford & Boucher, Stephen, 1998. "Migration, remittances, and inequality: estimating the net effects of migration on income distribution," Journal of Development Economics, Elsevier, Elsevier, vol. 55(2), pages 307-331, April.
  5. Yves Bourdet & Hans Falck, 2006. "Emigrants' remittances and Dutch Disease in Cape Verde," International Economic Journal, Taylor & Francis Journals, Taylor & Francis Journals, vol. 20(3), pages 267-284.
  6. Albert Bollard & David McKenzie & Melanie Morten & Hillel Rapoport, 2009. "Remittances and the Brain Drain Revisited: The Microdata Show That More Educated Migrants Remit More," Working Papers 2009-26, Bar-Ilan University, Department of Economics.
  7. Rodriguez, Edgard R, 1998. "International Migration and Income Distribution in the Philippines," Economic Development and Cultural Change, University of Chicago Press, vol. 46(2), pages 329-50, January.
  8. J. Edward Taylor & Alejandro Lopez-Feldman, 2010. "Does Migration Make Rural Households More Productive? Evidence from Mexico," Journal of Development Studies, Taylor & Francis Journals, vol. 46(1), pages 68-90.
  9. Wouterse, Fleur & Taylor, J. Edward, 2008. "Migration and Income Diversification:: Evidence from Burkina Faso," World Development, Elsevier, Elsevier, vol. 36(4), pages 625-640, April.
  10. Louka T. Katseli & Robert E.B. Lucas & Theodora Xenogiani, 2006. "Effects of Migration on Sending Countries: What Do We Know?," OECD Development Centre Working Papers 250, OECD Publishing.
  11. Amuedo-Dorantes, Catalina & Pozo, Susan, 2004. "Workers' Remittances and the Real Exchange Rate: A Paradox of Gifts," World Development, Elsevier, Elsevier, vol. 32(8), pages 1407-1417, August.
  12. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, Econometric Society, vol. 47(1), pages 153-61, January.
  13. Lopez, Humberto & Molina, Luis & Bussolo, Maurizio, 2007. "Remittances and the real exchange rate," Policy Research Working Paper Series 4213, The World Bank.
  14. Riccardo Faini, 2007. "Remittances and the Brain Drain: Do More Skilled Migrants Remit More?," World Bank Economic Review, World Bank Group, World Bank Group, vol. 21(2), pages 177-191, May.
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Cited by:
  1. van de Walle, Nicolas, 2012. "Foreign Aid in Dangerous Places: The donors and Mali.s democracy," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  2. Beyene, Berhe Mekonnen, 2012. "The Effects of International Remittances on Poverty and Inequality in Ethiopia," Memorandum, Oslo University, Department of Economics 13/2012, Oslo University, Department of Economics.

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