The Effects of International Remittances on Poverty and Inequality in Ethiopia

Berhe Mekonnen Beyene ()
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Berhe Mekonnen Beyene: Dept. of Economics, University of Oslo, Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway

No 13/2012, Memorandum from Oslo University, Department of Economics

Abstract: The paper studies the effects of international remittances on poverty and inequality in Ethiopia using an urban household survey from 2004. In order to identify the effects of remittances on poverty and inequality, counterfactual consumption in the hypothetical case of no remittance is estimated in a selection corrected estimation framework. Inequality and poverty values in the hypothetical and actual cases are then compared. There is a significant reduction in poverty while inequality does not change. The head count, the poverty gap and the squared poverty gap ratios decreased by 2.5%, 1.1% and 0.6% respectively.

Keywords: remittances; poverty; inequality; Ethiopia (search for similar items in EconPapers)
JEL-codes: F24 I32 O15 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2012-03-15
New Economics Papers: this item is included in nep-afr and nep-dev
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:osloec:2012_013

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