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On the Precarious Link between the Gini Coefficient and the Incentive to Migrate

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  • Stark, Oded

    (University of Bonn)

  • Byra, Lukasz

    (University of Warsaw)

  • Kosiorowski, Grzegorz

    (Cracow University of Economics)

Abstract

We offer an explanation for the inconclusive results of empirical studies into the relationship between the magnitude of the Gini coefficient of income distribution at origin and the intensity of migration. Bearing in mind the substantial literature that identifies relative deprivation as an important determinant of migration behavior, we study the relationship between aggregate or total relative deprivation, TRD, the Gini coefficient, G, and migration. We show that for a given change of incomes, TRD and G can behave differently. We present examples where, in the case of universal increases in incomes, TRD increases while G does not change; G decreases while TRD does not change; and G decreases while TRD increases. We generalize these examples into formal criteria, providing sufficient conditions on the initial and final income vectors under which incongruence between the directions of changes of G and of TRD occur. Our analysis leads us to infer that when the incentive to migrate increases with TRD, then this response can co-exist with no change of G or with a decrease of G.

Suggested Citation

  • Stark, Oded & Byra, Lukasz & Kosiorowski, Grzegorz, 2020. "On the Precarious Link between the Gini Coefficient and the Incentive to Migrate," IZA Discussion Papers 12910, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp12910
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    References listed on IDEAS

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    1. Kashi Kafle & Rui Benfica & Paul Winters, 2020. "Does relative deprivation induce migration? Evidence from Sub‐Saharan Africa," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(3), pages 999-1019, May.
    2. Anzelika Zaiceva & Klaus F. Zimmermann, 2008. "Scale, diversity, and determinants of labour migration in Europe," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 24(3), pages 428-452, Autumn.
    3. Stark, Oded, 2006. "Inequality and migration: A behavioral link," Economics Letters, Elsevier, vol. 91(1), pages 146-152, April.
    4. Stark, Oded & Taylor, J Edward, 1991. "Migration Incentives, Migration Types: The Role of Relative Deprivation," Economic Journal, Royal Economic Society, vol. 101(408), pages 1163-1178, September.
    5. Michael A. Quinn, 2006. "Relative Deprivation, Wage Differentials and Mexican Migration," Review of Development Economics, Wiley Blackwell, vol. 10(1), pages 135-153, February.
    6. Winters, P. & Kafle, K. & Benfica, R., 2018. "IFAD RESEARCH SERIES 21 - Does relative deprivation induce migration? Evidence from sub-Saharan Africa," IFAD Research Series 280070, International Fund for Agricultural Development (IFAD).
    7. Thomas Liebig & Alfonso Sousa‐Poza, 2004. "Migration, Self‐Selection and Income Inequality: An International Analysis," Kyklos, Wiley Blackwell, vol. 57(1), pages 125-146, February.
    8. Hyll, Walter & Schneider, Lutz, 2014. "Relative deprivation and migration preferences," Economics Letters, Elsevier, vol. 122(2), pages 334-337.
    9. Agbola, Frank W. & Acupan, Angelito B., 2010. "An empirical analysis of international labour migration in the Philippines," Economic Systems, Elsevier, vol. 34(4), pages 386-396, December.
    10. Stark, Oded & Micevska, Maja & Mycielski, Jerzy, 2009. "Relative poverty as a determinant of migration: Evidence from Poland," Economics Letters, Elsevier, vol. 103(3), pages 119-122, June.
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    Cited by:

    1. Sarkar, Sandip, 2023. "Gini decomposition: An inequality of opportunity perspective," Economics Letters, Elsevier, vol. 223(C).

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    More about this item

    Keywords

    the gini coefficient; total relative deprivation; the incentive to migrate; incongruence between measures of inequality;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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