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Migration, Remittances and Moral Hazard. Evidence from the Kayes Area (Western Mali)

Author

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  • Flore GUBERT

    ()

Abstract

This article uses recent survey data from the Kayes area (Western Mali) to estimate the effect of migration and remittances on the technical efficiency of agricultural households. A theoretical model is developed, which shows that the more insurance is provided by the migrants, the less incentive their families have to work. A production function using panel data with household-specific fixed effects is estimated to test this hypothesis. The probability of being financially supported by migrants is found to significantly contribute to technical inefficiency. This result should help agricultural policy makers formulate more efficient development strategies in the area.

Suggested Citation

  • Flore GUBERT, 2000. "Migration, Remittances and Moral Hazard. Evidence from the Kayes Area (Western Mali)," Working Papers 200017, CERDI.
  • Handle: RePEc:cdi:wpaper:144
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    File URL: http://publi.cerdi.org/ed/2000/2000.17.pdf
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    Cited by:

    1. Hagen-Zanker, Jessica, 2010. "Modest expectations: Causes and effects of migration on migrant households in source countries," MPRA Paper 29507, University Library of Munich, Germany.
    2. Mariapia Mendola, 2004. "Migration and Technological Change in Rural Households: Complements or Substitutes?," Development Working Papers 195, Centro Studi Luca d'Agliano, University of Milano.

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