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Does Migration Help Reducing Inequality and Social Exclusion?

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  • Marilena Giannetti
  • Daniele Federici
  • Michele Raitano

Abstract

The impact of remittance flows on growth and income distribution has attracted a great deal of attention, but the theoretical and empirical literature on the relationship between remittances and economic development is far from clear. Although there is wide consensus that foreign remittances can help receiving households to increase income, consumption and capabilities to face socioeconomic shocks, there has been little quantitative research on impacts of remittances on household welfare and poverty. Our paper seeks to fill some of these gaps and it proposes an empirical analysis of the role of remittances as tool for reducing inequality and covering households against poverty and social exclusion risks. The empirical analysis focuses on four Eastern European Countries: Slovenia, Poland, the Czech Republic and Hungary, and is based on the EU-SILC 2005 data-set, that for each household provides information regarding interhousehold cash transfers received amongst which, regular cash support from households in other countries (i.e. remittances) are included.

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Bibliographic Info

Paper provided by University of Rome La Sapienza, Department of Public Economics in its series Working Papers with number 118.

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Length: 22
Date of creation: Feb 2009
Date of revision:
Handle: RePEc:sap:wpaper:wp118

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Keywords: Remittances; inequality; poverty.;

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  1. Schrooten, Mechthild, 2005. "Bringing home the money: what determines worker's remittances to transition countries?," Discussion Paper Series a466, Institute of Economic Research, Hitotsubashi University.
  2. 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.
  3. Adams, Richard H, Jr, 1989. "Worker Remittances and Inequality in Rural Egypt," Economic Development and Cultural Change, University of Chicago Press, vol. 38(1), pages 45-71, October.
  4. Rapoport, Hillel & Docquier, Frederic, 2006. "The Economics of Migrants' Remittances," Handbook on the Economics of Giving, Reciprocity and Altruism, Elsevier.
  5. 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.
  6. Richard H. Adams, Jr., 1992. "The Effects of Migration and Remittances on Inequality in Rural Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 31(4), pages 1189-1206.
  7. Taylor, J. Edward, 1992. "Remittances and inequality reconsidered: Direct, indirect, and intertemporal effects," Journal of Policy Modeling, Elsevier, vol. 14(2), pages 187-208, April.
  8. Miguel León-Ledesma & Matloob Piracha, 2001. "International Migration and the Role of Remittances in Eastern Europe," Studies in Economics 0113, Department of Economics, University of Kent.
  9. Barry McCormick & Jackline Wahba, 2003. "Return International Migration and Geographical Inequality: The Case of Egypt," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 12(4), pages 500-532, December.
  10. repec:ebl:ecbull:v:15:y:2008:i:1:p:1-11 is not listed on IDEAS
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