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Remittances and Inequality

  • Gabriel Gonzalez-Konig

    ()

    (Department of Economics and Finance, Universidad de Guanajuato)

  • Quentin Wodon

    ()

    (The World Bank)

The impact of remittances on inequality is uncertain a priori. However, at the margin, remittances are likely to be more inequality increasing (or less inequality decreasing) in poorer as opposed to richer areas. This is suggested with a simple theoretical model, and tested empirically using survey-based estimates of the Gini income elasticity of remittances in Honduras. The results are robust to alternative distribution weights used for measuring inequality.

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File URL: http://economia.ugto.org/WorkingPapers/EC200506.pdf
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Paper provided by Universidad de Guanajuato, Department of Economics and Finance in its series Department of Economics and Finance Working Papers with number EC200506.

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Length: 17 pages
Date of creation: Mar 2005
Date of revision:
Handle: RePEc:gua:wpaper:ec200506
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  1. Becker, Gary S, 1974. "A Theory of Social Interactions," Journal of Political Economy, University of Chicago Press, vol. 82(6), pages 1063-93, Nov.-Dec..
  2. W. Neil Adger, 1999. "Exploring income inequality in rural, coastal Viet Nam," Journal of Development Studies, Taylor & Francis Journals, vol. 35(5), pages 96-119.
  3. Handa, Sudhanshu & King, Damien, 1997. "Structural adjustment policies, income distribution and poverty: A review of the jamaican experience," World Development, Elsevier, vol. 25(6), pages 915-930, June.
  4. Rodriguez, Edgard R, 1998. "International Migration and Income Distribution in the Philippines," Economic Development and Cultural Change, University of Chicago Press, vol. 46(2), pages 329-50, January.
  5. 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.
  6. Stark, Oded & Taylor, J. Edward & Yitzhaki, Shlomo, 1988. "Migration, remittances and inequality : A sensitivity analysis using the extended Gini index," Journal of Development Economics, Elsevier, vol. 28(3), pages 309-322, May.
  7. Yitzhaki, Shlomo, 1983. "On an Extension of the Gini Inequality Index," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 24(3), pages 617-28, October.
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