Please use this identifier to cite or link to this item:
Full metadata record
DC FieldValueLanguage
dc.contributor.authorKoechlin, Valerieen_US
dc.contributor.authorLeón, Gianmarcoen_US
dc.description.abstractThe aim of this paper is to provide comprehensive empirical evidence on the relationship between international remittances and income inequality. In simple cross-country regressions we find a non-monotonic link between these two variables when using ordinary least squares, instrumental variables; we also test our hypothesis using dynamic panel data methods. We provide evidence in support of existing theoretical work that accounts for network effects that describe how, in the first stages of migration history, there is an inequality-increasing effect of remittances on income inequality. Then, as the opportunity cost of migrating is lowered due to these effects, remittances sent to those households have a negative impact on inequality. We also show how education and the development of the financial sector can help countries to reach the inequality-decreasing section of the curve more quickly. Our results are robust to several empirical specifications, as well as for a wide variety of inequality measures.en_US
dc.publisher|aInter-American Development Bank, Research Dep. |cWashington, DCen_US
dc.relation.ispartofseries|aWorking paper // Inter-American Development Bank, Research Department |x571en_US
dc.subject.keywordInternational Remittancesen_US
dc.subject.keywordIncome distributionen_US
dc.titleInternational remittances and income inequality: An empirical investigationen_US
dc.typeWorking Paperen_US

Files in This Item:
230.08 kB

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.