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Social Policies or Private Solidarity?: The Equalizing Role of Migration and Remittances in El Salvador

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  • Acevedo, Carlos
  • Cabrera, Maynor
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    Abstract

    This paper reviews the pattern of poverty rates and income inequality in El Salvador since the 1990s. It discusses some of the likely factors that explain the reduction in income inequality that has taken place in the country in the last decade, which paradoxically has coincided with the long period of economic stagnation that has followed dollarization since 2001. After examination of the available evidence, we conclude that this trend has been mainly due to the equalizing effect of migration and remittances (that is, a .private safety net. built around solidarity within families) rather than the distributive effect of public social expenditure or other public policies.

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    File URL: http://www.wider.unu.edu/stc/repec/pdfs/wp2012/wp2012-013.pdf
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    Bibliographic Info

    Paper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Paper Series with number UNU-WIDER Research Paper WP2012/13.

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    Length: 24
    Date of creation: 2012
    Date of revision:
    Handle: RePEc:unu:wpaper:wp2012-13

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    Keywords: El Salvador; remittances; migration; inequality; poverty; labour market;

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    1. Edwards, Alejandra Cox & Ureta, Manuelita, 2003. "International migration, remittances, and schooling: evidence from El Salvador," Journal of Development Economics, Elsevier, vol. 72(2), pages 429-461, December.
    2. Gerardo Esquivel, 2011. "The Dynamics of Income Inequality in Mexico since NAFTA," JOURNAL OF LACEA ECONOMIA, LACEA - LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION.
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    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Social Policies or Private Solidarity?: The Equalizing Role of Migration and Remittances in El Salvador
      by Maximo Rossi in Wikiprogress América Latina on 2012-04-19 19:22:00

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