The effects of remittances on poverty and inequality: Evidence from rural southern Morocco
In this paper, we examine the effect of migrantsâ€™ remittances on poverty and inequality. The survey data were collected in Morocco, in the rural areas of the region Souss-Massa-Draa. By applying an original approach, we estimate the counterfactual income of remittance-recipient households corresponding to a hypothetical value of its average income calculated for a scenario without remittances; this is then compared with its current income. We find that the poverty rate and the vulnerability of non-poor households are significantly dropped due to remittances. Our findings also suggest that remittance inflows have increased income inequality compared to the no-migration counterfactual situation.
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|Date of revision:||May 2014|
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