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On the precarious link between the Gini coefficient and the incentive to migrate

Author

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  • Stark, Oded
  • Byra, Lukasz
  • Kosiorowski, Grzegorz

Abstract

We offer an explanation for the inconclusive results of empirical studies into the relationship between the magnitude of the Gini coefficient of income distribution at origin and the intensity of migration. Bearing in mind the substantial literature that identifies relative deprivation as an important determinant of migration behavior, we study the relationship between aggregate or total relative deprivation, TRD, the Gini coefficient, G, and migration. We show that for a given change of incomes, TRD and G can behave differently. We present examples where, in the case of universal increases in incomes, TRD increases while G does not change; G decreases while TRD does not change; and G decreases while TRD increases. We generalize these examples into formal criteria, providing sufficient conditions on the initial and final income vectors under which incongruence between the directions of changes of G and of TRD occur. Our analysis leads us to infer that when the incentive to migrate increases with TRD, then this response can co-exist with no change of G or with a decrease of G.

Suggested Citation

  • Stark, Oded & Byra, Lukasz & Kosiorowski, Grzegorz, "undated". "On the precarious link between the Gini coefficient and the incentive to migrate," Discussion Papers 301945, University of Bonn, Center for Development Research (ZEF).
    • Handle: RePEc:ags:ubzefd:301945
    DOI: 10.22004/ag.econ.301945
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    Cited by:

    1. Zihan Guan & Xiaoran Shi & Huajing Ying & Ruhui Xue & Xiaojiao Qiao, 2024. "An empirical study on traditional offline retailer’s switching intention towards community-based group buying program: A push–pull-mooring model," Electronic Markets, Springer;IIM University of St. Gallen, vol. 34(1), pages 1-20, December.
    2. Sarkar, Sandip, 2023. "Gini decomposition: An inequality of opportunity perspective," Economics Letters, Elsevier, vol. 223(C).
    3. Hiroaki Sakurai & Kenji Nozaki, 2025. "Pull Factors of Immigration in Thailand: GDP, Economic Disparity, Poverty, Unemployment, and FDI," Bulletin of Applied Economics, Risk Market Journals, vol. 12(2), pages 175-182.

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    Keywords

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    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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