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

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    1. Christopher F Baum & Mark E. Schaffer & Steven Stillman, 2002. "Instrumental variables and GMM: Estimation and testing," Boston College Working Papers in Economics 545, Boston College Department of Economics, revised 14 Feb 2003.
    2. Taylor, J. Edward & Mora, Jorge & Adams, Richard H., Jr., 2005. "Remittances, Inequality and Poverty: Evidence from Rural Mexico," 2005 Annual meeting, July 24-27, Providence, RI 19245, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. 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.
    4. Acosta, Pablo & Calderon, Cesar & Fajnzylber, Pablo & Lopez, Humberto, 2007. "What is the impact of international remittances on poverty and inequality in Latin America ?," Policy Research Working Paper Series 4249, The World Bank.
    5. John Fitzgerald & Peter Gottschalk & Robert Moffitt, 1998. "An Analysis of Sample Attrition in Panel Data: The Michigan Panel Study of Income Dynamics," Journal of Human Resources, University of Wisconsin Press, vol. 33(2), pages 251-299.
    6. Mckenzie, David & Rapoport, Hillel, 2007. "Network effects and the dynamics of migration and inequality: Theory and evidence from Mexico," Journal of Development Economics, Elsevier, vol. 84(1), pages 1-24, September.
    7. Lee Lillard & Constantijn Panis, 1996. "Marital status and mortality: The role of health," Demography, Springer, vol. 33(3), pages 313-327, August.
    8. Pia M. Orrenius & Madeline Zavodny & Jesús Cañas & Roberto Coronado, 2010. "Do remittances boost economic development? Evidence from Mexican states," Working Papers 1007, Federal Reserve Bank of Dallas.
    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 qt3cw7p1hx, Center for International and Development Economics Research, Institute for Business and Economic Research, UC Berkeley.
    10. 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.
    11. 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, vol. 70(1), pages 133-157, February.
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