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Do remittances affect poverty and inequality ? Evidence from Mali

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  • Mesplé-Somps, Sandrine
  • Lessourd, Thomas
  • Gubert, Flore

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.

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Paper provided by Université Paris-Dauphine in its series Open Access publications from Université Paris-Dauphine with number urn:hdl:123456789/5836.

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Handle: RePEc:ner:dauphi:urn:hdl:123456789/5836

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Related research

Keywords: Indicateurs de pauvreté; Mali; Envois de fonds; Travailleurs migrants;

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Cited by:
  1. Beyene, Berhe Mekonnen, 2012. "The Effects of International Remittances on Poverty and Inequality in Ethiopia," Memorandum 13/2012, Oslo University, Department of Economics.
  2. Adenutsi, Deodat E., 2011. "Do remittances alleviate poverty and income inequality in poor countries? Empirical evidence from sub-Saharan Africa," MPRA Paper 37130, University Library of Munich, Germany.

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