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Remittances and inequality: A dynamic migration model

Frédéric Docquier (), Hillel Rapoport and I-Leng Shen

No 2007003, Discussion Papers (ECON - Département des Sciences Economiques) from Université catholique de Louvain, Département des Sciences Economiques

Abstract: We develop a model to study the effects of migration and remittances on inequality in the origin communities. While wealth inequality is shown to be monotonically reduced along the time-span, the short-and the long-run impacts on income inequality may be of opposite signs, suggesting that the dynamic relationship between migration/remittances and inequality may well be characterized by an inverse U-shaped pattern. This is consistent with the findings of the empirical literature, yet offers a different interpretation from the usually assumed migration network effects. With no need to endogenize migration costs through the role of migration networks, we generate the same result via intergenerational wealth accumulation

Keywords: Migrations; remittances; inequality (search for similar items in EconPapers)
JEL-codes: O11 O15 J61 D31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev
Date: 2007-01-01
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Related works:
Journal Article: Remittances and inequality: a dynamic migration model (2010) Downloads
Working Paper: Remittances and inequality: A dynamic migration model (2006) Downloads
Working Paper: Remittances and Inequality: A Dynamic Migration Model (2003) Downloads
Working Paper: Remittances and Inequality: A Dynamic Migration Model (2003) Downloads
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