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Migrant remittances and inequality in Central-Eastern Europe

Author

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  • Marilena Giannetti
  • Daniela 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 the receiving households to increase income, consumption and capabilities to cope with 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 proposing an empirical analysis of the role of remittances as a 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 (European Union Statistics on Income and Living Conditions) 2005 data-set providing for each household information as to the received inter-household cash transfers and among which regular cash support from households in other countries (i.e. remittances) are included. The results show that remittances are statistically significant in terms of poverty reduction even if their effects are generally smaller than those of welfare transfers. Furthermore, the impact of remittances and welfare transfers differ across the countries considered.

Suggested Citation

  • Marilena Giannetti & Daniela Federici & Michele Raitano, 2009. "Migrant remittances and inequality in Central-Eastern Europe," International Review of Applied Economics, Taylor & Francis Journals, vol. 23(3), pages 289-307.
  • Handle: RePEc:taf:irapec:v:23:y:2009:i:3:p:289-307 DOI: 10.1080/02692170902811710
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    Cited by:

    1. repec:onb:oenbfi:y:2017:i:2:b:2 is not listed on IDEAS
    2. Meyer, Wiebke & Mollers, Judith & Buchenrieder, Gertrud, 2012. "A behavioural approach to remittances analysis," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126428, International Association of Agricultural Economists.
    3. repec:eee:injoed:v:55:y:2017:i:c:p:11-16 is not listed on IDEAS
    4. Yaw Nyarko and Kwabena Gyimah-Brempong, 2011. "Social Safety Nets: The Role of Education, Remittances and Migration," EUI-RSCAS Working Papers 26, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS).
    5. Berger, Melissa & Schaffner, Sandra, 2015. "A note on how to realize the full potential of the EU-SILC data," ZEW Discussion Papers 15-005, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    6. Melissa Engel & Sandra Schaffner, 2012. "How to Use the EU-SILC Panel to Analyse Monthly and Hourly Wages," Ruhr Economic Papers 0390, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    7. Engel, Melissa & Schaffner, Sandra, 2012. "How to Use the EU-SILC Panel to Analyse Monthly and Hourly Wages," Ruhr Economic Papers 390, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    8. Muhammad Shahbaz & Ijaz Rehman & Nurul Mahdzan, 2014. "Linkages between income inequality, international remittances and economic growth in Pakistan," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(3), pages 1511-1535, May.
    9. Waidler, J. & Hagen-Zanker, J. & Gassmann, F. & Siegel, M., 2014. "Do remittances and social assistance have different impacts on expenditure patterns of recipient households?: The Moldovan case," MERIT Working Papers 072, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    10. Judith Möllers & Wiebke Meyer, 2014. "The effects of migration on poverty and inequality in rural Kosovo," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-18, December.
    11. repec:zbw:rwirep:0390 is not listed on IDEAS

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    Keywords

    remittances; inequality; poverty;

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