Moving to opportunity, leaving behind what? Evaluating the initial effects of a migration policy on incomes and poverty in source areas
Emigration to New Zealand and consequent remittance inflows are dominant features of many Pacific Island countries. Evaluating the effect of these people and money flows on incomes and poverty in the Pacific is potentially complicated by the non-random selection of emigrants. This paper uses the randomization provided by an immigration ballot under the Pacific Access Category (PAC) of New Zealand's immigration policy to address this problem. We survey applicants to the 2002-05 PAC ballots in Tonga and compare outcomes for the remaining family of emigrants with those for similar families who were unsuccessful in the ballots. We then contrast these estimates with more conventional ones that construct no-emigration counterfactuals by deducting remittance income from the remaining family of PAC emigrants and adding back the potential home earnings of emigrants. The results suggest that the economic welfare of remaining family may fall in the initial period after members of their household move to New Zealand. We also find that non-experimental methods of constructing counterfactual income are likely to work well only in rare situations where there is random selection of emigrants.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 41 (2007)
Issue (Month): 2 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/RNZP20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/RNZP20|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
- Acosta, Pablo & Fajnzylber, Pablo & Lopez, J. Humberto, 2007. "The impact of remittances on poverty and human capital : evidence from Latin American household surveys," Policy Research Working Paper Series 4247, The World Bank.
- Joshua D. Angrist, 2003.
"Treatment Effect Heterogeneity in Theory and Practice,"
NBER Working Papers
9708, National Bureau of Economic Research, Inc.
- Joshua D. Angrist, 2004. "Treatment effect heterogeneity in theory and practice," Economic Journal, Royal Economic Society, vol. 114(494), pages 52-83, 03.
- Joshua Angrist, 2004. "Treatment Effect Heterogeneity in Theory and Practice," Econometric Society 2004 North American Winter Meetings 186, Econometric Society.
- Angrist, Joshua, 2003. "Treatment Effect Heterogeneity in Theory and Practice," IZA Discussion Papers 851, Institute for the Study of Labor (IZA).
- David McKenzie & Steven Stillman & John Gibson, 2010.
"How Important is Selection? Experimental VS. Non‐Experimental Measures of the Income Gains from Migration,"
Journal of the European Economic Association,
European Economic Association, vol. 8(4), pages 913-945, 06.
- David McKenzie & John Gibson & Steven Stillman, 2010. "How Important Is Selection? Experimental vs. Non-Experimental Measures of the Income Gains from Migration," Journal of the European Economic Association, MIT Press, vol. 8(4), pages 913-945, 06.
- McKenzie, David & Gibson, John & Stillman, Steven, 2006. "How Important Is Selection? Experimental vs. Non-Experimental Measures of the Income Gains from Migration," IZA Discussion Papers 2087, Institute for the Study of Labor (IZA).
- David McKenzie & John Gibson & Steven Stillman, 2006. "How Important is Selection? Experimental vs Non-experimental Measures of Income Gains from Migration," Working Papers in Economics 06/03, University of Waikato, Department of Economics.
- Richard P.C. Brown & Gareth Leeves, 2007. "Impacts of International Migration and Remittances," Discussion Papers Series 347, School of Economics, University of Queensland, Australia.
- John Gibson & David McKenzie & Halahingano Rohorua, 2006. "How Cost Elastic are Remittances? Estimates from Tongan Migrants in New Zealand," Working Papers in Economics 06/02, University of Waikato, Department of Economics.
- 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.
- Stillman, Steven & McKenzie, David & Gibson, John, 2007.
"Migration and mental health : evidence from a natural experiment,"
Policy Research Working Paper Series
4138, The World Bank.
- Stillman, Steven & McKenzie, David & Gibson, John, 2009. "Migration and mental health: Evidence from a natural experiment," Journal of Health Economics, Elsevier, vol. 28(3), pages 677-687, May.
- John Gibson & David McKenzie & Steven Stillman, 2006. "Migration and mental health: Evidence from a natural experiment," Natural Field Experiments 00334, The Field Experiments Website.
- Steven Stillman & David McKenzie & John Gibson, 2006. "Migration and Mental Health: Evidence from a Natural Experiment," Working Papers in Economics 06/04, University of Waikato, Department of Economics.
- Stark, Oded & Taylor, J Edward & Yitzhaki, Shlomo, 1986. "Remittances and Inequality," Economic Journal, Royal Economic Society, vol. 96(383), pages 722-740, September.
- James Heckman & Neil Hohmann & Jeffrey Smith, 1998.
"Substitution and Dropout Bias in Social Experiments: A Study of an Influential Social Experiment,"
UWO Department of Economics Working Papers
9819, University of Western Ontario, Department of Economics.
- James Heckman & Neil Hohmann & Jeffrey Smith & Michael Khoo, 2000. "Substitution and Dropout Bias in Social Experiments: A Study of an Influential Social Experiment," The Quarterly Journal of Economics, Oxford University Press, vol. 115(2), pages 651-694.
- Mckenzie, David & Rapoport, Hillel, 2007.
"Network effects and the dynamics of migration and inequality: Theory and evidence from Mexico,"
Journal of Development Economics,
Elsevier, vol. 84(1), pages 1-24, September.
- David Mckenzie & Hillel Rapoport, 2004. "Network Effects and the Dynamics of Migration and Inequality: Theory and Evidence from Mexico," Working Papers 2004-3, Bar-Ilan University, Department of Economics.
- Claudia Martínez Alvear & Dean Yang, 2007. "Remittances and Poverty in Migrants’ Home Areas: Evidence from the Philippines," Working Papers wp257, University of Chile, Department of Economics.
- Richard P.C. Brown & Gareth Leeves, 2007. "Impacts of International Migration and Remittances on Source Country Household Incomes in Small Island States; Fiji and Tonga," Working Papers 07-13, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
- David McKenzie, 2005. "Measuring inequality with asset indicators," Journal of Population Economics, Springer;European Society for Population Economics, vol. 18(2), pages 229-260, 06.
- Adams, Richard H., Jr. & Cuecuecha, Alfredo & Page, John, 2008. "Remittances, consumption and investment in Ghana," Policy Research Working Paper Series 4515, The World Bank.
When requesting a correction, please mention this item's handle: RePEc:taf:nzecpp:v:41:y:2007:i:2:p:197-223. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.