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Whole-household Migration, Inequality and Poverty in Rural Mexiko

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  • Aslihan Arslan
  • J. Edward Taylor
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    Abstract

    Whole-household migration potentially can alter the results of studies on income inequality based on panel data if it selects on household income. We model whole-household migration and its impacts on income inequality and poverty using a unique, nationally representative household panel data set from rural Mexico. Households that participate in whole-household migration and those who do not differ significantly in terms of observable characteristics; however, analyses of income and poverty based on the remaining sample are not necessarily biased. This finding is similar to those in previous research on the effects of attrition on panel data studies. We also analyze the changes in inequality and poverty due to whole-household migration and over time correcting for the effects of attrition. Our results support the migration diffusion hypothesis and underline the importance of paying attention to selective attrition in panel data studies on income distribution and poverty – especially in countries and regions with high migration rates

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    Bibliographic Info

    Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1742.

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    Length: 24 pages
    Date of creation: Nov 2011
    Date of revision:
    Handle: RePEc:kie:kieliw:1742

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    Related research

    Keywords: Attrition; panel data; income inequality; poverty; joint migration; Mexico;

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    1. 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, Elsevier, vol. 36(1), pages 89-114, January.
    2. Taylor, J. Edward & Mora, Jorge & Adams, Richard H., Jr. & Lopez-Feldman, Alejandro, 2005. "Remittances, Inequality and Poverty: Evidence from Rural Mexico," Working Papers, University of California, Davis, Department of Agricultural and Resource Economics 60287, University of California, Davis, Department of Agricultural and Resource Economics.
    3. John Fitzgerald & Peter Gottschalk & Robert Moffitt, 1997. "An Analysis of Sample Attrition in Panel Data: The Michigan Panel Study of Income Dynamics," Boston College Working Papers in Economics, Boston College Department of Economics 394, Boston College Department of Economics.
    4. Christopher F Baum & Mark E. Schaffer & Steven Stillman, 2002. "Instrumental variables and GMM: Estimation and testing," United Kingdom Stata Users' Group Meetings 2003, Stata Users Group 02, Stata Users Group.
    5. Lee Lillard & Constantijn Panis, 1996. "Marital status and mortality: The role of health," Demography, Springer, Springer, vol. 33(3), pages 313-327, August.
    6. David Mckenzie & Hillel Rapoport, 2004. "Network Effects and the Dynamics of Migration and Inequality: Theory and Evidence from Mexico," Working Papers, Bar-Ilan University, Department of Economics 2004-3, Bar-Ilan University, Department of Economics.
    7. McKenzie, David & Sasin, Marcin J., 2007. "Migration, remittances, poverty, and human capital : conceptual and empirical challenges," Policy Research Working Paper Series 4272, The World Bank.
    8. 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.
    9. Baird, Sarah & Hamory, Joan & Miguel, Edward, 2008. "Tracking, Attrition and Data Quality in the Kenyan Life Panel Survey Round 1 (KLPS-1)," Center for International and Development Economics Research, Working Paper Series, Center for International and Development Economics Research, Institute for Business and Economic Research, UC Berkele qt3cw7p1hx, Center for International and Development Economics Research, Institute for Business and Economic Research, UC Berkeley.
    10. Falaris, Evangelos M., 2003. "The effect of survey attrition in longitudinal surveys: evidence from Peru, Cote d'Ivoire and Vietnam," Journal of Development Economics, Elsevier, Elsevier, vol. 70(1), pages 133-157, February.
    11. Pia M. Orrenius & Madeline Zavodny & Jesús Cañas & Roberto Coronado, 2010. "Do remittances boost economic development? Evidence from Mexican states," Working Papers, Federal Reserve Bank of Dallas 1007, Federal Reserve Bank of Dallas.
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