What is the impact of international remittances on poverty and inequality in Latin America ?
AbstractWorkers'remittances have become a major source of income for developing countries. However, little is still known about their impact on poverty and inequality. Using a large cross-country panel dataset, the authors find that remittances in Latin American and Caribbean (LAC) countries have increased growth and reduced inequality and poverty. These results are robust to the use of different instruments that attempt to correct for the potential endogeneity of remittances. Household survey-based estimates for 10 LAC countries confirm that remittances have negative albeit relatively small inequality and poverty-reducing effects, even after imputations for the potential home earnings of migrants.
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Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 4249.
Date of creation: 01 Jun 2007
Date of revision:
Population Policies; Remittances; Inequality; Achieving Shared Growth; Poverty Impact Evaluation;
Other versions of this item:
- 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, vol. 36(1), pages 89-114, January.
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-06-18 (All new papers)
- NEP-DEV-2007-06-18 (Development)
- NEP-LAB-2007-06-18 (Labour Economics)
- NEP-LAM-2007-06-18 (Central & South America)
- NEP-LTV-2007-06-18 (Unemployment, Inequality & Poverty)
- NEP-MIG-2007-06-18 (Economics of Human Migration)
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