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 - Fondation pour les Etudes et Recherches sur le Développement International
Sylviane Guillaumont Jeanneney: FERDI - Fondation pour les Etudes et Recherches sur le Développement International

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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)
Date: 2019
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Citations: View citations in EconPapers (11)

Published in Review of World Economics, 2019, 155 (1), ⟨10.1007/s10290-018-0331-7⟩

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Related works:
Journal Article: Volatility widens inequality. Could aid and remittances help? (2019)
Working Paper: Volatility Widens Inequality. Could Aid and Remittances Help? (2017)
Working Paper: Volatility Widens Inequality. Could Aid and Remittances Help? (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02276800

DOI: 10.1007/s10290-018-0331-7

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