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On the precarious link between the Gini coefficient and the incentive to migrate

Oded Stark, Łukasz Byra and Grzegorz Kosiorowski

No 127, University of Tübingen Working Papers in Business and Economics from University of Tuebingen, Faculty of Economics and Social Sciences, School of Business and Economics

Abstract: We offer an explanation for the inconclusive results of empirical studies into the relationship between the magnitude of the Gini coefficient of income distribution at origin and the intensity of migration. Bearing in mind the substantial literature that identifies relative deprivation as an important determinant of migration behavior, we study the relationship between aggregate or total relative deprivation, TRD, the Gini coefficient, G, and migration. We show that for a given change of incomes, TRD and G can behave differently. We present examples where, in the case of universal increases in incomes, TRD increases while G does not change; G decreases while TRD does not change; and G decreases while TRD increases. We generalize these examples into formal criteria, providing sufficient conditions on the initial and final income vectors under which incongruence between the directions of changes of G and of TRD occur. Our analysis leads us to infer that when the incentive to migrate increases with TRD, then this response can co-exist with no change of G or with a decrease of G. @We offer an explanation for the inconclusive results of empirical studies into the relationship between the magnitude of the Gini coefficient of income distribution at origin and the intensity of migration. Bearing in mind the substantial literature that identifies relative deprivation as an important determinant of migration behavior, we study the relationship between aggregate or total relative deprivation, TRD, the Gini coefficient, G, and migration. We show that for a given change of incomes, TRD and G can behave differently. We present examples where, in the case of universal increases in incomes, TRD increases while G does not change; G decreases while TRD does not change; and G decreases while TRD increases. We generalize these examples into formal criteria, providing sufficient conditions on the initial and final income vectors under which incongruence between the directions of changes of G and of TRD occur. Our analysis leads us to infer that when the incentive to migrate increases with TRD, then this response can co-exist with no change of G or with a decrease of G.

Keywords: The Gini coefficient; Total relative deprivation; The incentive to migrate; Incongruence between measures of inequality (search for similar items in EconPapers)
JEL-codes: D31 D63 F22 O15 R23 (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-mig
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: On the precarious link between the Gini coefficient and the incentive to migrate (2020) Downloads
Working Paper: On the precarious link between the Gini coefficient and the incentive to migrate (2020) Downloads
Working Paper: On the Precarious Link between the Gini Coefficient and the Incentive to Migrate (2020) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:tuewef:127

DOI: 10.15496/publikation-38653

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