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Volatility widens inequality. Could aid and remittances help?

Lisa Chauvet (), Marin Ferry (), Patrick Guillaumont, Sylviane Guillaumont Jeanneney, Sampawende Tapsoba and Laurent Wagner
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Patrick Guillaumont: Ferdi
Sylviane Guillaumont Jeanneney: Ferdi

Review of World Economics (Weltwirtschaftliches Archiv), 2019, vol. 155, issue 1, 71-104

Abstract: Abstract We analyse the relationship between income volatility and inequality and the conditional role played by aid and remittances. Using a panel of 142 countries for the period 1973–2012, we confirm a well-established finding among the literature that income volatility has an adverse impact on inequality, and that the poorest people are the most exposed to these fluctuations. However, while aid and remittances do not seem to have a clear direct impact on inequality, we uncover robust evidence that suggests that aid helps dampen the negative effects of volatility on the distribution of income, while remittances do not.

Keywords: Volatility; Inequality; Aid; Remittances (search for similar items in EconPapers)
JEL-codes: F24 F35 O15 (search for similar items in EconPapers)
Date: 2019
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Working Paper: Volatility Widens Inequality. Could Aid and Remittances Help? (2017) Downloads
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