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Do remittances affect poverty and inequality? Evidence from Mali

Author

Listed:
  • 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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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Tebkieta Alexandra TAPSOBA, 2017. "Poverty, disasters and remittances: do remittances and past disasters influence households’ resilience?," Working Papers 201708, CERDI.
    2. 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.
    3. 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.
    4. Jamal Bouoiyour & Refk Selmi & Amal Miftah, 2017. "Relationship Between Remittances and Macroeconomic Variables in Times of Political and Social Upheaval: Evidence from Tunisia's Arab Spring," Working Papers 1140, Economic Research Forum, revised 09 2003.
    5. repec:rsr:supplm:v:65:y:2017:i:5:p:59-66 is not listed on IDEAS
    6. Tebkieta Alexandra Tapsoba, 2017. "Poverty, disasters and remittances: do remittances and past disasters influence households’ resilience?," Working Papers halshs-01512716, HAL.
    7. repec:unu:wpaper:wp2012-61 is not listed on IDEAS
    8. 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).
    9. 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.
    10. 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.
    11. Beyene, Berhe Mekonnen, 2012. "The Effects of International Remittances on Poverty and Inequality in Ethiopia," Memorandum 13/2012, Oslo University, Department of Economics.

    More about this item

    Keywords

    Remittances; Migration; Poverty; Inequality; Africa; Transferts; Migration; Pauvreté; Inégalité; Afrique.;

    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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