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Remittances and Inequality

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Author Info

  • Gabriel Gonzalez-Konig

    ()
    (Department of Economics and Finance, Universidad de Guanajuato)

  • Quentin Wodon

    ()
    (The World Bank)

Abstract

The impact of remittances on inequality is uncertain a priori. However, at the margin, remittances are likely to be more inequality increasing (or less inequality decreasing) in poorer as opposed to richer areas. This is suggested with a simple theoretical model, and tested empirically using survey-based estimates of the Gini income elasticity of remittances in Honduras. The results are robust to alternative distribution weights used for measuring inequality.

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Bibliographic Info

Paper provided by Universidad de Guanajuato, Department of Economics and Finance in its series Department of Economics and Finance Working Papers with number EC200506.

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Length: 17 pages
Date of creation: Mar 2005
Date of revision:
Handle: RePEc:gua:wpaper:ec200506

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Related research

Keywords: Migration; Remittances; Income Distribution.;

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References

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  1. Stark, Oded & Taylor, J. Edward & Yitzhaki, Shlomo, 1988. "Migration, remittances and inequality : A sensitivity analysis using the extended Gini index," Journal of Development Economics, Elsevier, vol. 28(3), pages 309-322, May.
  2. Gary S. Becker, 1974. "A Theory of Social Interactions," NBER Working Papers 0042, National Bureau of Economic Research, Inc.
  3. Yitzhaki, Shlomo, 1983. "On an Extension of the Gini Inequality Index," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 24(3), pages 617-28, October.
  4. Stark, Oded & Taylor, J Edward & Yitzhaki, Shlomo, 1986. "Remittances and Inequality," Economic Journal, Royal Economic Society, vol. 96(383), pages 722-40, September.
  5. Leones, J P & Feldman, S, 1998. "Nonfarm Activity and Rural Household Income: Evidence from Philippine Microdata," Economic Development and Cultural Change, University of Chicago Press, vol. 46(4), pages 789-806, July.
  6. 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.
  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.
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Citations

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Cited by:
  1. Valerie Koechlin & Gianmarco Leon, 2007. "International Remittances and Income Inequality: An Empirical Investigation," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 10(2), pages 123-141.
  2. Garcia, Pablo M & Rodriguez-Montemayor, Eduardo, 2010. "A primer of international migration: The Latin American experience and a proposal for a research agenda," MPRA Paper 24147, University Library of Munich, Germany.
  3. Christian Ebeke & Maëlan Le Goff, 2011. "Why Migrants' Remittances Reduce Income Inequality in some Countries and not in Others?," Working Papers halshs-00554277, HAL.
  4. Wodon, Quentin & Angel-Urdinola, Diego & Gonzalez-Konig, Gabriel & Ojeda Revah, Diana & Siaens, Corinne, 2003. "Migration and Poverty in Mexico’s Southern States," MPRA Paper 10574, University Library of Munich, Germany.
  5. Eduardo Rodríguez-Montemayor & Pablo M. García, 2009. "A Primer of International Migration: The Latin American Experience," IDB Publications 9327, Inter-American Development Bank.

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