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Do Remittances Affect Poverty and Inequality ? Evidence From Mali

Listed author(s):
  • Flore Gubert

    (DIAL - Développement, institutions et analyses de long terme, PSE - Paris School of Economics)

  • Thomas Lassourd

    (DFID - Department for International Development - DFID)

  • Sandrine Mesplé-Somps

    (DIAL - Développement, institutions et analyses de long terme, IRD - Institut de Recherche pour le Développement)

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.

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File URL: https://halshs.archives-ouvertes.fr/halshs-00966336/document
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Paper provided by HAL in its series PSE - G-MOND WORKING PAPERS with number halshs-00966336.

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Date of creation: May 2010
Handle: RePEc:hal:gmonwp:halshs-00966336
Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00966336
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  1. Jean-Pierre Lachaud, 1999. "Envois de fonds, inégalité et pauvreté au Burkina Faso," Revue Tiers Monde, Programme National Persée, vol. 40(160), pages 793-827.
  2. Albert Bollard & David McKenzie & Melanie Morten & Hillel Rapoport, 2009. "Remittances and the Brain Drain Revisited: The microdata show that more educated migrants remit more," CReAM Discussion Paper Series 0926, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  3. J. Edward Taylor & Alejandro López-Feldman, 2007. "Does Migration Make Rural Households More Productive? Evidence from Mexico," Working Papers 07-10, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
  4. Taylor, J. Edward & Wouterse, Fleur, 2006. "Migration and Income Diversification Evidence from Burkina Faso," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25379, International Association of Agricultural Economists.
  5. Acosta, Pablo & Calderon, Cesar & Fajnzylber, Pablo & Lopez, Humberto, 2008. "What is the Impact of International Remittances on Poverty and Inequality in Latin America?," World Development, Elsevier, vol. 36(1), pages 89-114, January.
  6. 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 329-350, January.
  7. James J. Heckman & Lance Lochner & Christopher Taber, 1998. "General Equilibrium Treatment Effects: A Study of Tuition Policy," NBER Working Papers 6426, National Bureau of Economic Research, Inc.
  8. Azam, Jean-Paul & Gubert, Flore, 2004. "Those in Kayes: The Impact of Remittances on their Recipients in Africa," IDEI Working Papers 308, Institut d'Économie Industrielle (IDEI), Toulouse.
  9. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-161, January.
  10. Richard H. Adams, Jr. & John Page, 2003. "International migration, remittances, and poverty in developing countries," Policy Research Working Paper Series 3179, The World Bank.
  11. Riccardo Faini, 2007. "Remittances and the Brain Drain: Do More Skilled Migrants Remit More?," World Bank Economic Review, World Bank Group, vol. 21(2), pages 177-191, May.
  12. 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.
  13. Lopez, Humberto & Molina, Luis & Bussolo, Maurizio, 2007. "Remittances and the real exchange rate," Policy Research Working Paper Series 4213, The World Bank.
  14. Louka T. Katseli & Robert E.B. Lucas & Theodora Xenogiani, 2006. "Effects of Migration on Sending Countries: What Do We Know?," OECD Development Centre Working Papers 250, OECD Publishing.
  15. Yves Bourdet & Hans Falck, 2006. "Emigrants' remittances and Dutch Disease in Cape Verde," International Economic Journal, Taylor & Francis Journals, vol. 20(3), pages 267-284.
  16. Amuedo-Dorantes, Catalina & Pozo, Susan, 2004. "Workers' Remittances and the Real Exchange Rate: A Paradox of Gifts," World Development, Elsevier, vol. 32(8), pages 1407-1417, August.
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