Do remittances improve income inequality? An instrumental variable quantile analysis of the Kenyan case

Bang, James T.; Mitra, Aniruddha; Wunnava, Phanindra V.

doi:10.1016/j.econmod.2016.04.004

Cited by 99 publications

(81 citation statements)

References 48 publications

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“…The use of quantile regression for similar purpose is well documented (Koenker, ). We apply the quantile regression to the model of household expenditure adopted from Bang et al., and specified as follows;

\begin{matrix} L n E x p p c_{i} & = {italicβ}_{0} + {italicβ}_{1} R e m i t t a n c e s_{i} + {italicβ}_{2} A g e_{i} + {italicβ}_{3} A g e_{i}^{2} + {italicβ}_{4} E d u c a t i o n_{i} + {italicβ}_{5} H H s i z e_{i} \\ + {italicβ}_{6} F e m a l e H e a d_{i} + {italicβ}_{7} U r b a n_{i} + \sum_{j} δ_{j} O c c u p a t i o n_{italicij} + \sum_{s} γ_{s} R e g i o n_{italicis} + {italicε}_{i} \end{matrix}

…”

Section: Estimation Methods and Choice Of Instrumentsmentioning

confidence: 99%

“…The work of Bang et al. () remains a novelty in this area of research due to the application of instrumental variable quantile regression analysis to investigate the impact of remittances on income inequality. Based on the Kenyan sample, the results show a clear support to the hypothesis that remittances reduce poverty and inequality.…”

Section: Empirical Studies On Remittances and Inequalitymentioning

confidence: 99%

“…Out of this number, there were 1,051 households who did not receive any form of remittance (internal or international) and 902 households that received either internal or international remittance. The remittance variable in this analysis is a dummy variable capturing whether a household received remittance or not, and not based on the quantity of remittances received, as the quantity of remittance is known to be noisy and prone to measurement error (see Bang et al., ). The idea is that much of the variations in remittances derive just from having access to remittances and not on the quantitative amount of remittances received.…”

Section: Datamentioning

confidence: 99%

“…As Bang et al. () observed, there is more agreement than disagreement with regard to the impact of remittances on growth and poverty; most of the evidence suggesting that remittances enhance growth and reduce poverty. Studies such as Catrinescu et al., () and Feeny et al., () support the poverty reduction hypothesis by emphasising that remittances stimulate financial development.…”

Section: Introductionmentioning

confidence: 99%

“…Bang et al. () was the first to contribute to the debate about the distributional impact of remittances in sub‐Saharan Africa, using these surveys. They concluded, on the basis of the Kenyan sample, that remittances reduce income inequality among households through their more than proportionate income enhancement for households in the lowest quantile of income distribution.…”

Section: Introductionmentioning

confidence: 99%

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Do remittances improve income inequality? An instrumental variable quantile analysis of the Senegalese case

Agwu

Yuni

Anochiwa

2017

International Migration

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\begin{matrix} L n E x p p c_{i} & = {italicβ}_{0} + {italicβ}_{1} R e m i t t a n c e s_{i} + {italicβ}_{2} A g e_{i} + {italicβ}_{3} A g e_{i}^{2} + {italicβ}_{4} E d u c a t i o n_{i} + {italicβ}_{5} H H s i z e_{i} \\ + {italicβ}_{6} F e m a l e H e a d_{i} + {italicβ}_{7} U r b a n_{i} + \sum_{j} δ_{j} O c c u p a t i o n_{italicij} + \sum_{s} γ_{s} R e g i o n_{italicis} + {italicε}_{i} \end{matrix}

…”

Section: Estimation Methods and Choice Of Instrumentsmentioning

confidence: 99%

Section: Empirical Studies On Remittances and Inequalitymentioning

confidence: 99%

Section: Datamentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Do remittances improve income inequality? An instrumental variable quantile analysis of the Senegalese case

Agwu

Yuni

Anochiwa

2017

International Migration

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Trade‐offs between labour migration and agricultural productivity: Evidence from smallholder wheat systems in Nepal

Paudel,

Nguyen,

Grote

2024

J of Intl Development

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Rural labour out‐migration has become a major contributor to off‐farm income through remittances and plays a crucial role in supporting the livelihoods of rural households in developing economies. However, research on the simultaneous on‐farm and off‐farm impacts of labour migration is still lacking. This study assesses the impacts of household labour migration on wheat productivity, labour and total costs, profitability and off‐farm income among smallholder wheat growers in Nepal. We use endogenous switching regression and two‐stage least squares regression models to control for potential endogeneity. The findings reveal that labour migration boosts off‐farm income due to remittances but negatively affects wheat productivity and profitability due to labour shortages. In addition, heterogeneous effects are observed, with large farms, cooperative membership, use of farm mechanization and non‐marginalized castes recording positive impacts. The study suggests that social institutions, such as cooperatives, and farm mechanization can create synergies between labour migration and agricultural productivity in Nepal.

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The impact of migrant remittances on poverty reduction in Bangladesh

Dey,

Basak

2024

Poverty & Public Policy

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This study aims to assess the impact of international remittances on poverty alleviation in Bangladeshi migrant families using household surveys. A Multi‐Stage Stratified Random Sampling approach was employed to collect data from four upazilas of the Tangail and Comilla districts. The propensity score matching (PSM) method is used to evaluate the impact of returnee workers' remittances on household economic welfare that to ensure poverty alleviation. The average treatment effect in treated outcomes using the PSM technique demonstrates that the land asset, income, and expenditure scenario of migrant households has improved significantly compared to nonmigrants, indicating a notable reduction in poverty. Moreover, international remittances also improved savings and investment status substantially, along with wealth accrual and land possession. Hence, international remittances proved to be a boon for migrant families as remittances drove returnee households towards lower poverty in Bangladesh. Intervention programs that include financial literacy components (including digital banking) for safe money transfer and low interest bank loans for migration costs are required to maintain remittance inflows and sustainable reductions in poverty.

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Do remittances improve income inequality? An instrumental variable quantile analysis of the Kenyan case

Cited by 99 publications

References 48 publications

Do remittances improve income inequality? An instrumental variable quantile analysis of the Senegalese case

Do remittances improve income inequality? An instrumental variable quantile analysis of the Senegalese case

Trade‐offs between labour migration and agricultural productivity: Evidence from smallholder wheat systems in Nepal

The impact of migrant remittances on poverty reduction in Bangladesh

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