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Transforming Rural Economies: Migration, Income Generation and Inequality in Rural Mexico

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  • Aslihan Arslan
  • J. Edward Taylor

Abstract

We analyse how migration shapes the distribution and sources of rural income using nationally representative panel data from Mexico. Income source Gini decompositions provide some support for the migration diffusion hypothesis. Nevertheless, migration's influence on other income sources and household re-ranking substantially alter distributional impacts. We find significant impacts of migration on non-remittance income, as well as changes in the effects of non-migration activities on inequality over time. We conclude that migration is transforming rural economies in ways that go beyond the scope of most past research on migration and inequality.

Suggested Citation

  • Aslihan Arslan & J. Edward Taylor, 2011. "Transforming Rural Economies: Migration, Income Generation and Inequality in Rural Mexico," Journal of Development Studies, Taylor & Francis Journals, vol. 48(8), pages 1156-1176, November.
  • Handle: RePEc:taf:jdevst:v:48:y:2012:i:8:p:1156-1176
    DOI: 10.1080/00220388.2012.682985
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    References listed on IDEAS

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    1. Gerardo Esquivel, 2011. "The Dynamics of Income Inequality in Mexico since NAFTA," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Fall 2011), pages 155-188, August.
    2. Dilip Ratha & Sanket Mohapatra & Ani Silwal, 2009. "Outlook for Remittance Flows 2009-2011 : Remittances Expected to Fall by 7-10 Percent in 2009," World Bank Publications - Reports 10975, The World Bank Group.
    3. Jesus Cañas & Roberto Coronado & Pia M. Orrenius & Madeline Zavodny, 2010. "Do remittances boost economic development? Evidence from Mexican states," Working Papers 1007, Federal Reserve Bank of Dallas.
    4. Dilip Ratha & Sanket Mohapatra, 2009. "Revised Outlook for Remittance Flows 2009?2011 : Remittances Expected to Fall by 5 to 8 Percent in 2009," World Bank Publications - Reports 10990, The World Bank Group.
    5. J. Edward Taylor & Mateusz Filipski, 2011. "The Impact of Migration Policies on Rural Household Welfare in Mexico and Nicaragua," OECD Development Centre Working Papers 298, OECD Publishing.
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    Citations

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    Cited by:

    1. Hossain, Marup & Onel, Gulcan & Mullally, Conner, 2016. "Migration and household decision on occupational choice and investment: Evidence from Bangladesh," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236136, Agricultural and Applied Economics Association.
    2. Sauer, Johannes & Gorton, Matthew & Davidova, Sophia, 2014. "Migration and Agricultural Efficiency," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 172684, Agricultural and Applied Economics Association.
    3. Sauer, J. & Gorton, M. & Davidova, S., 2014. "Migration and Agricultural Efficiency – Empirical Evidence for Kosovo," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 49, March.
    4. Pachon Ariza, Fabio Alberto & Bokelmann, Wolfgang & Ramirez Miranda, Cesar Adrian, 2017. "Heritage and Patrimony of the Peasantry Framework and Rural Development Indicators in Rural Communities in Mexico," Brazilian Journal of Rural Economy and Sociology (Revista de Economia e Sociologia Rural-RESR), Sociedade Brasileira de Economia e Sociologia Rural, vol. 55(2), February.
    5. Kusunose, Yoko & Rignall, Karen, 2015. "Labor migration, poverty and the long-term development impact of international migration," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205558, Agricultural and Applied Economics Association.
    6. Sauer, J. & Davidova, S. & Gorton, M., 2013. "Migration and Agricultural Efficiency in Kosovo," 87th Annual Conference, April 8-10, 2013, Warwick University, Coventry, UK 158864, Agricultural Economics Society.
    7. Jessoe, Katrina & Manning, Dale T. & Taylor, J. Edward, 2014. "Climate Change and Labor Markets in Rural Mexico: Evidence from Annual Fluctuations in Weather," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170556, Agricultural and Applied Economics Association.
    8. Manning, Dale T. & Taylor, J. Edward, 2014. "Migration and fuel use in rural Mexico," Ecological Economics, Elsevier, vol. 102(C), pages 126-136.
    9. Seidu, Ayuba & Onel, Gulcan, 2015. "International Migration, Remittance Income, and Income Diversification Strategies among Rural Farm Households in Transitional Albania," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205517, Agricultural and Applied Economics Association.

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