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Do remittances affect poverty and inequality? Evidence from Mali

Author

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  • Flore Gubert

    (IRD, UMR 225 DIAL, Université Paris Dauphine,Paris School of Economics)

  • Thomas Lassourd

    (DIFID)

  • Sandrine Mesplé-Somps

    (IRD, UMR 225 DIAL, Université Paris Dauphine)

Abstract

Using a 2006 household survey in Mali, we compare current poverty rates and inequality levels with counterfactual ones in the absence of migration and remittances. With proper hypotheses on migrants and a selection model, we are able to impute a counterfactual income for households currently receiving remittances. We show that remittances reduce poverty rates by 5% to 11% and the Gini coefficient by about 5%. Households in the bottom quintiles are more dependent on remittances, which are less substitutable by additional workforce.________________________________ Cet article examine l’impact distributif des transferts des migrants au Mali, à partir de l’enquête sur les niveaux de vie ELIM 2006. Nous construisons différents scénarii contrefactuels qui corrigent du biais de sélection des ménages avec migrants. Nous montrons que les transferts des migrants internationaux réduisent la pauvreté de 5 à 11% au niveau national et l’indice de Gini d’environ 5%. Les niveaux de consommation des ménages appartenant aux quintiles les plus pauvres sont plus dépendants des transferts, ménages dont les revenus de substitution aux transferts restent faibles du fait de dotations en capital physique et humain insuffisants.

Suggested Citation

  • Flore Gubert & Thomas Lassourd & Sandrine Mesplé-Somps, 2010. "Do remittances affect poverty and inequality? Evidence from Mali," Working Papers DT/2010/08, DIAL (Développement, Institutions et Mondialisation).
  • Handle: RePEc:dia:wpaper:dt201008
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    Cited by:

    1. Selçuk Akçay, 2022. "Remittances and income inequality in the Philippines," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 36(1), pages 30-47, May.
    2. Jamal Bouoiyour & Refk Selmi & Amal Miftah, 2019. "The relationship between remittances and macroeconomic variables in times of political and social upheaval: Evidence from Tunisia's Arab Spring," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 27(2), pages 355-394, February.
    3. Beyene, Berhe Mekonnen, 2012. "The Effects of International Remittances on Poverty and Inequality in Ethiopia," Memorandum 13/2012, Oslo University, Department of Economics.
    4. Richard Disney & Andy McKay & C Rashaad Shabab, 2023. "Household inequality and remittances in rural Thailand: a life-cycle perspective," Oxford Economic Papers, Oxford University Press, vol. 75(2), pages 418-443.
    5. Ms. Kimberly Beaton & Ms. Svetlana Cerovic & Misael Galdamez & Metodij Hadzi-Vaskov & Franz Loyola & Zsoka Koczan & Mr. Bogdan Lissovolik & Mr. Jan Kees Martijn & Ms. Yulia Ustyugova & Joyce Wong, 2017. "Migration and Remittances in Latin America and the Caribbean: Engines of Growth and Macroeconomic Stabilizers?," IMF Working Papers 2017/144, International Monetary Fund.
    6. Tebkieta Alexandra Tapsoba, 2017. "Poverty, disasters and remittances: do remittances and past disasters influence households’ resilience?," CERDI Working papers halshs-01512716, HAL.
    7. Tebkieta Alexandra Tapsoba, 2017. "Poverty, disasters and remittances: do remittances and past disasters influence households’ resilience?," Working Papers halshs-01512716, HAL.
    8. Zsóka Kóczán & Franz Loyola, 2021. "How do migration and remittances affect inequality? A case study of Mexico," Journal of International Development, John Wiley & Sons, Ltd., vol. 33(2), pages 360-381, March.
    9. van de Walle, Nicolas, 2012. "Foreign Aid in Dangerous Places: The Donors and Mali's Democracy," WIDER Working Paper Series 061, World Institute for Development Economic Research (UNU-WIDER).
    10. Adenutsi, Deodat E., 2011. "Do remittances alleviate poverty and income inequality in poor countries? Empirical evidence from sub-Saharan Africa," MPRA Paper 37130, University Library of Munich, Germany.
    11. La, Hai Anh & Xu, Ying, 2017. "Remittances, social security, and the crowding-out effect: Evidence from Vietnam," Journal of Asian Economics, Elsevier, vol. 49(C), pages 42-59.
    12. Berhe Mekonnen Beyene, 2014. "The Effects of International Remittances on Poverty and Inequality in Ethiopia," Journal of Development Studies, Taylor & Francis Journals, vol. 50(10), pages 1380-1396, November.
    13. Loxha Arbëresha, 2019. "Do Remittances reduce poverty in Kosovo? - A counterfactual analysis," South East European Journal of Economics and Business, Sciendo, vol. 14(2), pages 117-132, December.
    14. Akpa, Emeka, 2018. "Private Remittances Received and Household Consumption in Ghana (1980-2016): An ARDL Analysis with Structural Breaks," MPRA Paper 87103, University Library of Munich, Germany.
    15. Disney, Richard & Mckay, Andy & Shabab, C Rashaad, 2023. "Household inequality and remittances in rural Thailand: a life-cycle perspective," LSE Research Online Documents on Economics 121207, London School of Economics and Political Science, LSE Library.
    16. Courage Mlambo & Forget Kapingura, 2020. "Remittances and Economic Development: Evidence from SADC Countries?," Eurasian Journal of Economics and Finance, Eurasian Publications, vol. 8(4), pages 261-273.
    17. Tebkieta Alexandra TAPSOBA, 2017. "Poverty, disasters and remittances: do remittances and past disasters influence households’ resilience?," Working Papers 201708, CERDI.
    18. Constantin ANGHELACHE & Ion PARTACHI & Madalina-Gabriela ANGHEL & Georgiana NITA, 2017. "Remittances, A Factor For Poverty Reduction," Romanian Statistical Review Supplement, Romanian Statistical Review, vol. 65(5), pages 59-66, May.
    19. repec:unu:wpaper:wp2012-61 is not listed on IDEAS
    20. Generoso, Rémi, 2015. "How do rainfall variability, food security and remittances interact? The case of rural Mali," Ecological Economics, Elsevier, vol. 114(C), pages 188-198.
    21. Mduduzi Biyase & Fiona Tregenna, 2016. "Determinants of remittances in South Africa," SALDRU Working Papers 176, Southern Africa Labour and Development Research Unit, University of Cape Town.
    22. Mamadou Abdoulaye Diallo, 2022. "Subjective poverty and migration intention abroad: The case of Senegal," African Development Review, African Development Bank, vol. 34(3), pages 410-424, September.
    23. John C. Anyanwu, 2016. "Empirical Analysis of the Main Drivers of Income Inequality in Southern Africa," Annals of Economics and Finance, Society for AEF, vol. 17(2), pages 337-364, November.

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    More about this item

    Keywords

    Remittances; Migration; Poverty; Inequality; Africa; Transferts; Migration; Pauvreté; Inégalité; Afrique.;
    All these keywords.

    JEL classification:

    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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