Household Inequality and Remittances in Rural Thailand: A Lifecycle Perspective

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "Household Inequality and Remittances in Rural Thailand: A Lifecycle Perspective"

Transcription

1 Household Inequality and Remittances in Rural Thailand: A Lifecycle Perspective Richard Disney*, Andy McKay + & C. Rashaad Shabab + *Institute of Fiscal Studies, University of Sussex and University College, London. + University of Sussex 22/12/2017

2 What does this paper do? Documents declining income inequality over the lifecycles of a panel of Thai Households. Demonstrates that decline is not explained by the standard lifecycle factors (individual earnings, household composition). Presents evidence that differences in the receipt of remittances from adult children of the household head living outside the village account for the entirety of observed convergence. Studies the features of the distribution of remittances which enable remittances to reduce inequality among the households of origin.

3 Why is a Decline in Income Inequality Interesting? Income inequality in any fixed membership group, such as a balanced panel or a cohort does not usually decrease. If innovations to income have a permanent component that is imperfectly correlated across households, income inequality will diverge. U.S.A., U.K. and Taiwan (Deaton and Paxson, 1994), Australia (Chatterjee, Singh, and Stone, 2015), Germany (Bonke, Corneo and Luthen, 2015), Italy (Rosati, 2003 and Jappelli and Pistaferri, 2010) and Japan (Yamada, 2009). Potentially different inequality dynamics in developing countries: Agricultural shocks are mainly transitory in nature (Deaton 1989, 1991). Agricultural shocks exhibit a strong covariate component (Rosenzweig and Wolpin, 1989; Udry 1994; Morduch, 1994; Townsend, 1994 and Dercon 2006, among others). Multiple generations cohabit, insuring household income against lifecycle-related productivity dips (Deaton, 1989; Ehrlich and Lui, 1991; Banerjee, Meng and Qian, 2010; Oliveira, 2016)

4 Literature: Inequality and Remittances Cohabitation is not the only option available to insure against lifecycle productivity dips; children can leave the village of origin and remit back. Inequality and Remittances: Lipton (1980): Remittance flows disproportionately benefitted households that were better off to begin with and so exacerbated rural inequality (multiple countries). Stark, Taylor and Yitzhaki (1986) found Gini coefficients were lower with remittances, suggesting diffusion of information (Mexican villages). Adams (1989): Predict household income if migrants had stayed back. Remittances increase inequality compared to this counterfactual (Egyptian villages). McKenzie and Rapoport (2007) allow for multiplier effects and general equilibrium effects, and find that migration reduces inequality, if there is enough past migration (Mexican villages).

5 The Data: The Townsend Thai Project I use data from the Townsend Thai Project (Townsend, 2011) 15 years ( ) of panel data on income, and remittances from children living outside the village, 64 villages. Balanced panel of 609 households. Unbalanced panel of 14,163 observations in 15 years. Especially suitable to study intra-family, intergenerational transfers because of dedicated section on children living outside the village. Reasonably high quality income data for a developing country context (validation, inclusion of gifts and home production).

6 The Townsend Thai Project on Inequality or Migration Pawasutipaisit and Townsend (2011) document declining wealth inequality in the monthly series of the Project. This decline is driven by differential savings rates, and differential returns on assets rather than remittances. However, this finding is not robust to the annual data (p. 57) Yang (2004) studies differences between inequalities in productivity and income at the provincial level. The focus is not on the dynamics of income inequality, or on cohorts of households as it is here. Paulson (2000) shows that migration plays an important insurance function in rural Thailand, but is not primarily interested in the effect on inequality.

7 Declining Inequality in the Balanced Panel Suggests that a robust prediction of the lifecycle model does not hold, but: Younger household heads may be replacing older ones. Younger cohorts may be less unequal than older ones (Hall, 1978; Dickens, 2000, etc.) Important to break this down into year of birth cohorts.

8 Inequality is declining within cohorts: Income inequality declines over the lifecycle for every cohort for which we have reasonable cohort-year cell sizes. There does not appear to be much evidence that initial inequality varies systematically between cohorts as it does in other studies (e.g. Blundell, Pistaferri and Preston, 2008). There may be heterogeneity in the rate at which inequality is declining. We test these observations using: σ "# = α + β " ) t + + γ " ) t + u "#

9 Declining inequality, limited heterogeneity We cannot statistically distinguish between the initial levels of inequality between the three younger cohorts. The oldest cohort is significantly more unequal than the others at the beginning of the panel. For every cohort we reject the hypothesis that g = 0 in favour of the alternative that g < 0. No statistical evidence that the rates of decline differ systematically between cohorts (I also test this formally and fail to reject the null that they are the same).

10 Robustness: Different Measures of Inequality For every inequality measure I reject the hypothesis that g = 0 in favour of the alternative that g < 0, for every cohort. The result is thus robust to a wide range of commonly used measures of inequality. Therefore, it is not driven by an implicit choice over different social welfare functions.

11 Is The Result Driven by Differences Between Villages? We regress household income on a fully interacted set of village and time fixed effects. This absorbs all between village dynamics and allows us to focus on variation within villages, between households. We then repeat the analysis on the residuals from this regression.

12 Possible drivers of convergence Convergence in the distribution of individual earnings over the lifecycle. Changes in the composition of households over the lifecycle. Differences in the receipt of transfers from outside the household over the lifecycle.

13 Are Individual Earnings Converging? Falling household income inequality may be due to convergence in the earnings of individuals that comprise the household. Ideally, I would disaggregate household income into the contributions of individual members, but this cannot be done unambiguously (potential unobserved heterogeneity). So restrict attention to the 26% of working household members who are in wage labor. Daily wages are subject to labor supply decisions and availability of hours, whereas monthly wages are not. So I only present the results for monthly wages here (daily wage analysis available in the paper)

14 Monthly Wage Inequality Over the Lifecycle Some evidence that older cohorts are more unequal. (standard finding, e.g. Dickens, 2000 and Blundell et al. 2008) No evidence of convergence.

15 Might Cohabitation Reduce Inequality? Cohabitation of adult children in their parent s household has important implications for the applicability of the lifecycle hypothesis to developing countries (Deaton, 1989; Ehrlich and Liu, 1991; Banerjee et al., 2010; among others). Poorer households may exhibit higher fertility, so that more children contribute to household income later in the lifecycle. A given child of a poorer household may be more likely to stay on in their parents household into adulthood. Either of these factors would imply that later on in the lifecycles of the heads, poorer households would have more income earners, explaining convergence in the distribution of household income.

16 Higher rates of cohabitation of adult children in richer households On average, the number of children in poorer households starts to decline slightly later in the lifecycle of the heads. Early on, a household in the bottom income quartile has one-third more resident children than a household in the top quartile. But the children of poorer households continue to leave until this trend is reversed when the heads reach their mid-50s. For the remainder of the lifecycle, richer households have on average one child of the head resident with them. At this stage, poorer households have roughly one third fewer resident children.

17 Increasing Importance of Remittances Over the Lifecycle Remittances increase in importance from when the heads of household reach their mid-forties until they reach their late fifties. After the heads of household are in their fifties, remittances account for between one quarter and one third of household income. This effect may vary across the income distribution.

18 Importance of Remittances by Decile of Permanent Income Remittances are a greater proportion of the incomes of poorer households than richer ones. Cohort-year cell sizes are too small to plot this over the lifecycle for every decile. So, I split the sample into relatively rich and relatively poor households.

19 Comparing the Importance of Remittances Between the Rich and the Poor All indications are that these differences would be more pronounced at the extremes of the income distribution, if we had the data to observe them.

20 Inequality Dynamics of Income Not Remitted by Children Inequality in the component of household income that is not remitted by non-resident children increases in the standard way. So inequality in this component of household income is indeed increasing over the lifecycle.

21 Can we Argue Causation? Adams (1989) if household members had not migrated and remitted, they would have been in some other form of employment. Here we use matching techniques to identify the counterfactual dynamics of inequality that would have prevailed if children stayed in the household. Matching is usually used to identify counterfactual levels, not inequality. Errors in matching will overstate counterfactual inequality; matches to extreme values will exhibit mean reversion understating counterfactual inequality. We assume these errors are uncorrelated with the age of the head of household.

22 Matching households Ideally match remittance receiving to otherwise similar non-receiving households. Only 83/609 households never receive remittances. So we match low (<10% of household income) remittance receiving households to high (>10%) remittance receiving households. We use a Probit to model the probability of households receiving high remittances over the duration of the panel conditioning on household characteristics in Characteristics are sex, age, education, total number of adult children of the head of household; and the average number of years of education of the adult children in the household Use observed incomes for low remittance households and matched incomes for high remittance households.

23 Counterfactual Inequality Dynamics The declines in counterfactual inequality are significantly less sharp than for observed inequality for the three earlier cohorts. The resulting t-statistics for the cohorts born in the 1930s, 1940s, 1950s and 1960s are 15.15, 19.33, and 1.68 (1% critical value 2.39) Thus we can conclude that remittances have caused an acceleration in the decline in inequality. The cohort born in the 1960s is relatively young and therefore unlikely to have working children, explaining the exception.

24 Conclusions: Inequality within villages, between household is declining over time among these Thai households. Remittances from children constitute a larger share of the incomes of poorer households. They become important only later in the lifecycle of the recipients. Together, these forces account for the ability of remittances to reduce income inequality over time, and over the lifecycle. Counterfactual income distribution suggests that remittances have caused an acceleration in the decline in inequality for three out of four cohorts. Can we dig deeper? Is it more children remitting, or each child remitting more? Does gender play a role? Read our paper!

25 Thanks!

26 The Quantity of Remitters by Income Level Households in the top two deciles receive remittances from significantly fewer children. Households in the bottom two deciles of permanent income receive remittances from 3.5 children, on average. Those in the top two deciles receive remittances from less than 2.5 children on average.

27 The Quality of Remitters by Income Level The remittances of each child constitute a larger proportion of household income for poorer households than for richer ones. This representation reduces statistical power because the data have been collapsed down into deciles to ease visual interpretation. In a regression with remittance per child as a proportion of household income as the dependent variable, and a household s percentile in the distribution of permanent income is significant. A 10 percentage point movement up the distribution of permanent income is associated with a 0.537% (t = 4.86) reduction in the proportion of household income that is accounted for by remittance per child.

28 Non-Resident Female Children and Income Poorer households have more daughters who live outside the village. However, women may be less likely to migrate for economic reasons than men.

29 Number of Female Remitters and Income There is no significant difference in the number of female remitters across the distribution of income.

30 Daily Wage Inequality Over the Lifecycle Evidence for daily wages is mixed. Inequality does appear to be decreasing for the middle three cohorts, though this is accompanied by a great deal of noise. Certainly not the clear declines documented in Figure 2.

31 Table 1: Summary Statistics Variable Observations Mean Standard deviation Minimum value Maximum value Net household 14, , , ,050,222 income Individual 2,929 10, , , monthly wages Individual 6, daily wages Year of birth of 14, household head Number of 14, resident Children Remittances 9,570 21, , ,096,907 from children Number of 13, children living outside village Number of children who remit 14,

32 Table 4: Cohort Year Cell Sizes for Household Income Decade of birth 1900s 1910s 1920s 1930s 1940s 1950s 1960s 1970s 1980s

33 Table 6: F-tests for differences between cohorts of time trends in the evolution of household income inequality 1930s 1940s 1950s 1940s 1.11 (0.2967) s 0.23 (0.6370) 1960s 2.19 (0.1453) 0.33 (0.5668) 0.44 (0.5096) (0.2833) F-statistics distributed with (1, 51) degrees of freedom; p-values in parentheses.

34

35

36 Appendix 3: Cohort Year Cell Sizes for Monthly Wage Earners Cohort age in 1997: 10s 20s 30s 40s 50s 60s 70s 80s 90s

37 Appendix 4: Cohort Year Cell Sizes for Daily Wage Earners Cohort age in 1997:

38 Important Factors that We Do Not Observe The reason for migrating, i.e. marriage, to set up an independent household elsewhere, to remit resources to the household of origin. The earnings of the migrant at the destination.

39

Remittances and Poverty. in Guatemala* Richard H. Adams, Jr. Development Research Group (DECRG) MSN MC World Bank.

Remittances and Poverty. in Guatemala* Richard H. Adams, Jr. Development Research Group (DECRG) MSN MC World Bank. Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Remittances and Poverty in Guatemala* Richard H. Adams, Jr. Development Research Group

More information

Europe and the US: Preferences for Redistribution

Europe and the US: Preferences for Redistribution Europe and the US: Preferences for Redistribution Peter Haan J. W. Goethe Universität Summer term, 2010 Peter Haan (J. W. Goethe Universität) Europe and the US: Preferences for Redistribution Summer term,

More information

Immigrant Employment and Earnings Growth in Canada and the U.S.: Evidence from Longitudinal data

Immigrant Employment and Earnings Growth in Canada and the U.S.: Evidence from Longitudinal data Immigrant Employment and Earnings Growth in Canada and the U.S.: Evidence from Longitudinal data Neeraj Kaushal, Columbia University Yao Lu, Columbia University Nicole Denier, McGill University Julia Wang,

More information

The Remitting Patterns of African Migrants in the OECD #

The Remitting Patterns of African Migrants in the OECD # The Remitting Patterns of African Migrants in the OECD # Albert Bollard, Stanford University David McKenzie, World Bank Melanie Morten, Yale University Abstract Recorded remittances to Africa have grown

More information

Remittances and Poverty in Migrants Home Areas: Evidence from the Philippines

Remittances and Poverty in Migrants Home Areas: Evidence from the Philippines 3 Remittances and Poverty in Migrants Home Areas: Evidence from the Philippines Dean Yang and Claudia A. Martínez Introduction Between 1965 and 2000, individuals living outside their countries of birth

More information

Research Report. How Does Trade Liberalization Affect Racial and Gender Identity in Employment? Evidence from PostApartheid South Africa

Research Report. How Does Trade Liberalization Affect Racial and Gender Identity in Employment? Evidence from PostApartheid South Africa International Affairs Program Research Report How Does Trade Liberalization Affect Racial and Gender Identity in Employment? Evidence from PostApartheid South Africa Report Prepared by Bilge Erten Assistant

More information

Network effects and the dynamics of. migration and inequality: theory and evidence from Mexico

Network effects and the dynamics of. migration and inequality: theory and evidence from Mexico Network effects and the dynamics of migration and inequality: theory and evidence from Mexico David Mckenzie a and Hillel Rapoport b a Development Research Group, The World Bank b Department of Economics,

More information

Remittances and the Brain Drain: Evidence from Microdata for Sub-Saharan Africa

Remittances and the Brain Drain: Evidence from Microdata for Sub-Saharan Africa Remittances and the Brain Drain: Evidence from Microdata for Sub-Saharan Africa Julia Bredtmann 1, Fernanda Martinez Flores 1,2, and Sebastian Otten 1,2,3 1 RWI, Rheinisch-Westfälisches Institut für Wirtschaftsforschung

More information

Labor Market Dropouts and Trends in the Wages of Black and White Men

Labor Market Dropouts and Trends in the Wages of Black and White Men Industrial & Labor Relations Review Volume 56 Number 4 Article 5 2003 Labor Market Dropouts and Trends in the Wages of Black and White Men Chinhui Juhn University of Houston Recommended Citation Juhn,

More information

Prospects for Immigrant-Native Wealth Assimilation: Evidence from Financial Market Participation. Una Okonkwo Osili 1 Anna Paulson 2

Prospects for Immigrant-Native Wealth Assimilation: Evidence from Financial Market Participation. Una Okonkwo Osili 1 Anna Paulson 2 Prospects for Immigrant-Native Wealth Assimilation: Evidence from Financial Market Participation Una Okonkwo Osili 1 Anna Paulson 2 1 Contact Information: Department of Economics, Indiana University Purdue

More information

Statistical Discrimination, Productivity, and the Height of Immigrants

Statistical Discrimination, Productivity, and the Height of Immigrants 1 Statistical Discrimination, Productivity, and the Height of Immigrants Shing-Yi Wang March 18, 2014 Abstract Building on the economic research that demonstrates a positive relationship between height

More information

The Determinants and the Selection. of Mexico-US Migrations

The Determinants and the Selection. of Mexico-US Migrations The Determinants and the Selection of Mexico-US Migrations J. William Ambrosini (UC, Davis) Giovanni Peri, (UC, Davis and NBER) This draft March 2011 Abstract Using data from the Mexican Family Life Survey

More information

Can migration prospects reduce educational attainments? *

Can migration prospects reduce educational attainments? * Can migration prospects reduce educational attainments? * David McKenzie a and Hillel Rapoport b a Department of Economics, Stanford University, and World Bank Development Research Group b Department of

More information

NBER WORKING PAPER SERIES WHY DON T MORE PUERTO RICAN MEN WORK? THE RICH UNCLE (SAM) HYPOTHESIS. María E. Enchautegui Richard B.

NBER WORKING PAPER SERIES WHY DON T MORE PUERTO RICAN MEN WORK? THE RICH UNCLE (SAM) HYPOTHESIS. María E. Enchautegui Richard B. NBER WORKING PAPER SERIES WHY DON T MORE PUERTO RICAN MEN WORK? THE RICH UNCLE (SAM) HYPOTHESIS María E. Enchautegui Richard B. Freeman Working Paper 11751 http://www.nber.org/papers/w11751 NATIONAL BUREAU

More information

NOTA DI LAVORO The Decision to Migrate and Social Capital: Evidence from Albania

NOTA DI LAVORO The Decision to Migrate and Social Capital: Evidence from Albania NOTA DI LAVORO 91.2009 The Decision to Migrate and Social Capital: Evidence from Albania By Cristina Cattaneo, Fondazione Eni Enrico Mattei and University of Sussex GLOBAL CHALLENGES Series Editor: Gianmarco

More information

The Labour Market Adjustment of Immigrants in New Zealand

The Labour Market Adjustment of Immigrants in New Zealand The Labour Market Adjustment of Immigrants in New Zealand Steven Stillman and David C. Maré Motu Working Paper [Enter Number (Office Use)] Motu Economic and Public Policy Research March 2009 Author contact

More information

Schooling and Cohort Size: Evidence from Vietnam, Thailand, Iran and Cambodia. Evangelos M. Falaris University of Delaware. and

Schooling and Cohort Size: Evidence from Vietnam, Thailand, Iran and Cambodia. Evangelos M. Falaris University of Delaware. and Schooling and Cohort Size: Evidence from Vietnam, Thailand, Iran and Cambodia by Evangelos M. Falaris University of Delaware and Thuan Q. Thai Max Planck Institute for Demographic Research March 2012 2

More information

Economic Development and the Role of Women in Rural China

Economic Development and the Role of Women in Rural China Economic Development and the Role of Women in Rural China Dwayne Benjamin* Loren Brandt* Daniel Lee** Social Science Division Hong Kong University of Science & Technology Clear Water Bay Kowloon Hong Kong

More information

Canadian Labour Market and Skills Researcher Network

Canadian Labour Market and Skills Researcher Network Canadian Labour Market and Skills Researcher Network Working Paper No. 69 Immigrant Earnings Growth: Selection Bias or Real Progress? Garnett Picot Statistics Canada Patrizio Piraino Statistics Canada

More information

Fiscal Impacts of Immigration in 2013

Fiscal Impacts of Immigration in 2013 www.berl.co.nz Authors: Dr Ganesh Nana and Hugh Dixon All work is done, and services rendered at the request of, and for the purposes of the client only. Neither BERL nor any of its employees accepts any

More information

Ghana Lower-middle income Sub-Saharan Africa (developing only) Source: World Development Indicators (WDI) database.

Ghana Lower-middle income Sub-Saharan Africa (developing only) Source: World Development Indicators (WDI) database. Knowledge for Development Ghana in Brief October 215 Poverty and Equity Global Practice Overview Poverty Reduction in Ghana Progress and Challenges A tale of success Ghana has posted a strong growth performance

More information

MEXICO-US IMMIGRATION: EFFECTS OF WAGES

MEXICO-US IMMIGRATION: EFFECTS OF WAGES MEXICO-US IMMIGRATION: EFFECTS OF WAGES AND BORDER ENFORCEMENT Rebecca Lessem November 28, 2017 Abstract In this paper, I study how relative wages and border enforcement affect immigration from Mexico

More information

REMITTANCE TRANSFERS TO ARMENIA: PRELIMINARY SURVEY DATA ANALYSIS

REMITTANCE TRANSFERS TO ARMENIA: PRELIMINARY SURVEY DATA ANALYSIS REMITTANCE TRANSFERS TO ARMENIA: PRELIMINARY SURVEY DATA ANALYSIS microreport# 117 SEPTEMBER 2008 This publication was produced for review by the United States Agency for International Development. It

More information

Skills and Wage Inequality:

Skills and Wage Inequality: NEW APPROACHES TO ECONOMIC CHALLENGES Seminar, 21 October 2014 Skills and Wage Inequality: Evidence from PIAAC Marco PACCAGNELLA OECD Directorate for Education and Skills This document is published on

More information

Growth with equity: income inequality in Vietnam,

Growth with equity: income inequality in Vietnam, J Econ Inequal DOI 10.1007/s10888-016-9341-7 Growth with equity: income inequality in Vietnam, 2002 14 Dwayne Benjamin 2 Loren Brandt 2 Brian McCaig 1 Received: 13 March 2014 / Accepted: 28 November 2016

More information

Development Microeconomics

Development Microeconomics Jean-Louis Arcand Professor, Department of International Economics Office tel: +41 22 9085945 The Graduate Institute, Office P1.6-66 Office fax: +41 22 7333049 Maison de la Paix, Chemin Eugène Rigot 2

More information

Remittances and the Brain Drain: Evidence from Microdata for Sub-Saharan Africa

Remittances and the Brain Drain: Evidence from Microdata for Sub-Saharan Africa DISCUSSION PAPER SERIES IZA DP No. 10367 Remittances and the Brain Drain: Evidence from Microdata for Sub-Saharan Africa Julia Bredtmann Fernanda Martínez Flores Sebastian Otten November 2016 Forschungsinstitut

More information

Edexcel (A) Economics A-level

Edexcel (A) Economics A-level Edexcel (A) Economics A-level Theme 4: A Global Perspective 4.2 Poverty and Inequality 4.2.2 Inequality Notes Distinction between wealth and income inequality Wealth is defined as a stock of assets, such

More information

Small Employers, Large Employers and the Skill Premium

Small Employers, Large Employers and the Skill Premium Small Employers, Large Employers and the Skill Premium January 2016 Damir Stijepic Johannes Gutenberg University, Mainz Abstract I document the comovement of the skill premium with the differential employer

More information

Migration, Remittances and Educational Investment. in Rural China

Migration, Remittances and Educational Investment. in Rural China Migration, Remittances and Educational Investment in Rural China Mengbing ZHU # GATE, École Normale Supérieure de Lyon March 29, 2016 Abstract Using rural household data from China Household Income Project

More information

CH 19. Name: Class: Date: Multiple Choice Identify the choice that best completes the statement or answers the question.

CH 19. Name: Class: Date: Multiple Choice Identify the choice that best completes the statement or answers the question. Class: Date: CH 19 Multiple Choice Identify the choice that best completes the statement or answers the question. 1. In the United States, the poorest 20 percent of the household receive approximately

More information

(606) Migration in Developing Countries Internal migration in Indonesia: Mobility behaviour in the 1993 Indonesian Family Life Survey

(606) Migration in Developing Countries Internal migration in Indonesia: Mobility behaviour in the 1993 Indonesian Family Life Survey Session Theme: Title: Organizer: Author: (606) Migration in Developing Countries Internal migration in Indonesia: Mobility behaviour in the 1993 Indonesian Family Life Survey Philip Guest Elda L. Pardede

More information

Chapter 9. Labour Mobility. Introduction

Chapter 9. Labour Mobility. Introduction Chapter 9 Labour Mobility McGraw-Hill/Irwin Labor Economics, 4 th edition Copyright 2008 The McGraw-Hill Companies, Inc. All rights reserved. 9-2 Introduction Existing allocation of workers and firms is

More information

Extended Families across Mexico and the United States. Extended Abstract PAA 2013

Extended Families across Mexico and the United States. Extended Abstract PAA 2013 Extended Families across Mexico and the United States Extended Abstract PAA 2013 Gabriela Farfán Duke University After years of research we ve come to learn quite a lot about household allocation decisions.

More information

Long live your ancestors American dream:

Long live your ancestors American dream: Long live your ancestors American dream: The self-selection and multigenerational mobility of American immigrants Joakim Ruist* University of Gothenburg joakim.ruist@economics.gu.se April 2017 Abstract

More information

The Impact of Having a Job at Migration on Settlement Decisions: Ethnic Enclaves as Job Search Networks

The Impact of Having a Job at Migration on Settlement Decisions: Ethnic Enclaves as Job Search Networks The Impact of Having a Job at Migration on Settlement Decisions: Ethnic Enclaves as Job Search Networks Lee Tucker Boston University This version: October 15, 2014 Abstract Observational evidence has shown

More information

Competitiveness: A Blessing or a Curse for Gender Equality? Yana van der Muelen Rodgers

Competitiveness: A Blessing or a Curse for Gender Equality? Yana van der Muelen Rodgers Competitiveness: A Blessing or a Curse for Gender Equality? Yana van der Muelen Rodgers Selected Paper prepared for presentation at the International Agricultural Trade Research Consortium s (IATRC s)

More information

Moving Up the Ladder? The Impact of Migration Experience on Occupational Mobility in Albania

Moving Up the Ladder? The Impact of Migration Experience on Occupational Mobility in Albania Moving Up the Ladder? The Impact of Migration Experience on Occupational Mobility in Albania Calogero Carletto and Talip Kilic Development Research Group, The World Bank Prepared for the Fourth IZA/World

More information

Remittances and Poverty in Ghana 1

Remittances and Poverty in Ghana 1 Remittances and Poverty in Ghana 1 Kwabena Gyimah-Brempong Department of Economics University of South Florida 4202 East Fowler Avenue Tampa, FL 33620 email: kgyimah@usf.edu Tel: (813) 974 6520 and Elizabeth

More information

Health shocks and consumption smoothing in South Africa: do remittances have a role to play?

Health shocks and consumption smoothing in South Africa: do remittances have a role to play? Health shocks and consumption smoothing in South Africa: do remittances have a role to play? Abstract Mduduzi Biyase University of Johannesburg, economics department E-mail: mbiyase@uj.ac.za Many poor

More information

Abstract. Keywords: Emigration, Lottery, Poverty, Remittances, Selectivity JEL codes: J61, F22, C21

Abstract. Keywords: Emigration, Lottery, Poverty, Remittances, Selectivity JEL codes: J61, F22, C21 The Importance of Selectivity and Duration-Dependent Heterogeneity When Estimating the Impact of Emigration on Incomes and Poverty in Sending Areas: Evidence from the Samoan Quota Migration Lottery 1 John

More information

Inflation and relative price variability in Mexico: the role of remittances

Inflation and relative price variability in Mexico: the role of remittances Applied Economics Letters, 2008, 15, 181 185 Inflation and relative price variability in Mexico: the role of remittances J. Ulyses Balderas and Hiranya K. Nath* Department of Economics and International

More information

School Performance of the Children of Immigrants in Canada,

School Performance of the Children of Immigrants in Canada, School Performance of the Children of Immigrants in Canada, 1994-98 by Christopher Worswick * No. 178 11F0019MIE No. 178 ISSN: 1205-9153 ISBN: 0-662-31229-5 Department of Economics, Carleton University

More information

Remittances and Well-Being among Rural-to-Urban Migrants in China

Remittances and Well-Being among Rural-to-Urban Migrants in China D I S C U S S I O N P A P E R S E R I E S IZA DP No. 6631 Remittances and Well-Being among Rural-to-Urban Migrants in China Alpaslan Akay Corrado Giulietti Juan D. Robalino Klaus F. Zimmermann June 2012

More information

Changes in Wage Inequality in Canada: An Interprovincial Perspective

Changes in Wage Inequality in Canada: An Interprovincial Perspective s u m m a r y Changes in Wage Inequality in Canada: An Interprovincial Perspective Nicole M. Fortin and Thomas Lemieux t the national level, Canada, like many industrialized countries, has Aexperienced

More information

Emigration and source countries; Brain drain and brain gain; Remittances.

Emigration and source countries; Brain drain and brain gain; Remittances. Emigration and source countries; Brain drain and brain gain; Remittances. Mariola Pytliková CERGE-EI and VŠB-Technical University Ostrava, CReAM, IZA, CCP and CELSI Info about lectures: https://home.cerge-ei.cz/pytlikova/laborspring16/

More information

I'll Marry You If You Get Me a Job: Marital Assimilation and Immigrant Employment Rates

I'll Marry You If You Get Me a Job: Marital Assimilation and Immigrant Employment Rates DISCUSSION PAPER SERIES IZA DP No. 3951 I'll Marry You If You Get Me a Job: Marital Assimilation and Immigrant Employment Rates Delia Furtado Nikolaos Theodoropoulos January 2009 Forschungsinstitut zur

More information

Emigration, Remittances, and Labor Force Participation in Mexico

Emigration, Remittances, and Labor Force Participation in Mexico Emigration, Remittances, and Labor Force Participation in Mexico May 2005 Gordon H. Hanson * University of California, San Diego and National Bureau of Economic Research Abstract. In this paper, I examine

More information

THE GENDER WAGE GAP AND SEX SEGREGATION IN FINLAND* OSSI KORKEAMÄKI TOMI KYYRÄ

THE GENDER WAGE GAP AND SEX SEGREGATION IN FINLAND* OSSI KORKEAMÄKI TOMI KYYRÄ THE GENDER WAGE GAP AND SEX SEGREGATION IN FINLAND* OSSI KORKEAMÄKI Government Institute for Economic Research (VATT), P.O. Box 269, FI-00101 Helsinki, Finland; e-mail: ossi.korkeamaki@vatt.fi and TOMI

More information

The Impact of Foreign Workers on the Labour Market of Cyprus

The Impact of Foreign Workers on the Labour Market of Cyprus Cyprus Economic Policy Review, Vol. 1, No. 2, pp. 37-49 (2007) 1450-4561 The Impact of Foreign Workers on the Labour Market of Cyprus Louis N. Christofides, Sofronis Clerides, Costas Hadjiyiannis and Michel

More information

The labor market in Japan,

The labor market in Japan, DAIJI KAWAGUCHI University of Tokyo, Japan, and IZA, Germany HIROAKI MORI Hitotsubashi University, Japan The labor market in Japan, Despite a plummeting working-age population, Japan has sustained its

More information

The effect of a generous welfare state on immigration in OECD countries

The effect of a generous welfare state on immigration in OECD countries The effect of a generous welfare state on immigration in OECD countries Ingvild Røstøen Ruen Master s Thesis in Economics Department of Economics UNIVERSITY OF OSLO May 2017 II The effect of a generous

More information

Revisiting the effects of skills on economic inequality: Within- and cross-country comparisons using PIAAC

Revisiting the effects of skills on economic inequality: Within- and cross-country comparisons using PIAAC Commissioned Paper February 2015 Revisiting the effects of skills on economic inequality: Within- and cross-country comparisons using PIAAC Author: Anita Alves Pena Suggested Citation: Pena, A. A. (2015).

More information

The Demography of the Labor Force in Emerging Markets

The Demography of the Labor Force in Emerging Markets The Demography of the Labor Force in Emerging Markets David Lam I. Introduction This paper discusses how demographic changes are affecting the labor force in emerging markets. As will be shown below, the

More information

City Size, Migration, and Urban Inequality in the People's Republic of China

City Size, Migration, and Urban Inequality in the People's Republic of China Cornell University ILR School DigitalCommons@ILR International Publications Key Workplace Documents 4-2017 City Size, Migration, and Urban Inequality in the People's Republic of China Binkai Chen Central

More information

Migration and Consumption Insurance in Bangladesh

Migration and Consumption Insurance in Bangladesh Migration and Consumption Insurance in Bangladesh Costas Meghir (Yale) Mushfiq Mobarak (Yale) Corina Mommaerts (Wisconsin) Melanie Morten (Stanford) October 18, 2017 Seasonal migration and consumption

More information

ESSAYS ON MEXICAN MIGRATION. by Heriberto Gonzalez Lozano B.A., Universidad Autonóma de Nuevo León, 2005 M.A., University of Pittsburgh, 2011

ESSAYS ON MEXICAN MIGRATION. by Heriberto Gonzalez Lozano B.A., Universidad Autonóma de Nuevo León, 2005 M.A., University of Pittsburgh, 2011 ESSAYS ON MEXICAN MIGRATION by Heriberto Gonzalez Lozano B.A., Universidad Autonóma de Nuevo León, 2005 M.A., University of Pittsburgh, 2011 Submitted to the Graduate Faculty of the Dietrich School of

More information

Is Economic Development Good for Gender Equality? Income Growth and Poverty

Is Economic Development Good for Gender Equality? Income Growth and Poverty Is Economic Development Good for Gender Equality? February 25 and 27, 2003 Income Growth and Poverty Evidence from many countries shows that while economic growth has not eliminated poverty, the share

More information

3.3 DETERMINANTS OF THE CULTURAL INTEGRATION OF IMMIGRANTS

3.3 DETERMINANTS OF THE CULTURAL INTEGRATION OF IMMIGRANTS 1 Duleep (2015) gives a general overview of economic assimilation. Two classic articles in the United States are Chiswick (1978) and Borjas (1987). Eckstein Weiss (2004) studies the integration of immigrants

More information

The Economic and Social Outcomes of Children of Migrants in New Zealand

The Economic and Social Outcomes of Children of Migrants in New Zealand The Economic and Social Outcomes of Children of Migrants in New Zealand Julie Woolf Statistics New Zealand Julie.Woolf@stats.govt.nz, phone (04 931 4781) Abstract This paper uses General Social Survey

More information

Discussion comments on Immigration: trends and macroeconomic implications

Discussion comments on Immigration: trends and macroeconomic implications Discussion comments on Immigration: trends and macroeconomic implications William Wascher I would like to begin by thanking Bill White and his colleagues at the BIS for organising this conference in honour

More information

Inequality of Wage Rates, Earnings, and Family Income in the United States, PSC Research Report. Report No

Inequality of Wage Rates, Earnings, and Family Income in the United States, PSC Research Report. Report No Peter Gottschalk and Sheldon Danziger Inequality of Wage Rates, Earnings, and Family Income in the United States, 1975-2002 PSC Research Report Report No. 04-568 PSC P OPULATION STUDIES CENTER AT THE INSTITUTE

More information

2016 Nova Scotia Culture Index

2016 Nova Scotia Culture Index 2016 Nova Scotia Culture Index Final Report Prepared for: Communications Nova Scotia and Department of Communities, Culture and Heritage March 2016 www.cra.ca 1-888-414-1336 Table of Contents Page Introduction...

More information

Should I Stay or Should I Go?

Should I Stay or Should I Go? Policy Research Working Paper 7752 WPS7752 Should I Stay or Should I Go? Internal Migration and Household Welfare in Ghana Vasco Molini Dan Pavelesku Marco Ranzani Public Disclosure Authorized Public Disclosure

More information

Gender and Ethnicity in LAC Countries: The case of Bolivia and Guatemala

Gender and Ethnicity in LAC Countries: The case of Bolivia and Guatemala Gender and Ethnicity in LAC Countries: The case of Bolivia and Guatemala Carla Canelas (Paris School of Economics, France) Silvia Salazar (Paris School of Economics, France) Paper Prepared for the IARIW-IBGE

More information

Edward L. Glaeser Harvard University and NBER and. David C. Maré * New Zealand Department of Labour

Edward L. Glaeser Harvard University and NBER and. David C. Maré * New Zealand Department of Labour CITIES AND SKILLS by Edward L. Glaeser Harvard University and NBER and David C. Maré * New Zealand Department of Labour [Revised version is forthcoming in Journal of Labor Economics 19(2), April 2000]

More information

Inequality in Indonesia: Trends, drivers, policies

Inequality in Indonesia: Trends, drivers, policies Inequality in Indonesia: Trends, drivers, policies Taufik Indrakesuma & Bambang Suharnoko Sjahrir World Bank Presented at ILO Country Level Consultation Hotel Borobudur, Jakarta 24 February 2015 Indonesia

More information

How Do Network Externalities Lead to Intergroup Inequality?

How Do Network Externalities Lead to Intergroup Inequality? How Do Network Externalities Lead to Intergroup Inequality? Paul DiMaggio Princeton University Filiz Garip Harvard University Basic Idea: Inequality among groups is exacerbated by the diffusion of practices

More information

What drives the language proficiency of immigrants? Immigrants differ in their language proficiency along a range of characteristics

What drives the language proficiency of immigrants? Immigrants differ in their language proficiency along a range of characteristics Ingo E. Isphording IZA, Germany What drives the language proficiency of immigrants? Immigrants differ in their language proficiency along a range of characteristics Keywords: immigrants, language proficiency,

More information

NBER WORKING PAPER SERIES PEER MIGRATION IN CHINA. Yuyu Chen Ginger Zhe Jin Yang Yue. Working Paper

NBER WORKING PAPER SERIES PEER MIGRATION IN CHINA. Yuyu Chen Ginger Zhe Jin Yang Yue. Working Paper NBER WORKING PAPER SERIES PEER MIGRATION IN CHINA Yuyu Chen Ginger Zhe Jin Yang Yue Working Paper 15671 http://www.nber.org/papers/w15671 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue

More information

International Remittances and Financial Inclusion in Sub-Saharan Africa

International Remittances and Financial Inclusion in Sub-Saharan Africa Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Policy Research Working Paper 6991 International Remittances and Financial Inclusion

More information

Migrant Opportunity and the Educational Attainment of Youth in Rural China

Migrant Opportunity and the Educational Attainment of Youth in Rural China Migrant Opportunity and the Educational Attainment of Youth in Rural China Alan de Brauw Department of Economics Williams College John Giles Department of Economics Michigan State University July 6, 2005

More information

The impact of Chinese import competition on the local structure of employment and wages in France

The impact of Chinese import competition on the local structure of employment and wages in France No. 57 February 218 The impact of Chinese import competition on the local structure of employment and wages in France Clément Malgouyres External Trade and Structural Policies Research Division This Rue

More information

Happiness convergence in transition countries

Happiness convergence in transition countries Happiness convergence in transition countries Sergei Guriev and Nikita Melnikov Summary The transition happiness gap has been one of the most robust findings in the life satisfaction literature. Until

More information

A Duration Analysis of Poverty Transitions in Rural Kenya

A Duration Analysis of Poverty Transitions in Rural Kenya A Duration Analysis of Poverty Transitions in Rural Kenya Lilian Kirimi 1 and Kirimi Sindi Department of Agricultural Economics Michigan State University East Lansing, MI 48824-1039, U.S.A. Selected Paper

More information

Discussion Paper Series

Discussion Paper Series Discussion Paper Series CDP No 21/09 The Remitting Patterns of African Migrants in the OECD Albert Bollard, David McKenzie and Melanie Morten Centre for Research and Analysis of Migration Department of

More information

Earnings Inequality: Stylized Facts, Underlying Causes, and Policy

Earnings Inequality: Stylized Facts, Underlying Causes, and Policy Earnings Inequality: Stylized Facts, Underlying Causes, and Policy Barry Hirsch Department of Economics Andrew Young School of Policy Sciences Georgia State University Prepared for Atlanta Economics Club

More information

Working Paper No Migration and education inequality in rural Mexico

Working Paper No Migration and education inequality in rural Mexico Working Paper No. 258 Migration and education inequality in rural Mexico by David McKenzie * Hillel Rapoport** September 2005 Stanford University John A. and Cynthia Fry Gunn Building 366 Galvez Street

More information

EXPORT, MIGRATION, AND COSTS OF MARKET ENTRY EVIDENCE FROM CENTRAL EUROPEAN FIRMS

EXPORT, MIGRATION, AND COSTS OF MARKET ENTRY EVIDENCE FROM CENTRAL EUROPEAN FIRMS Export, Migration, and Costs of Market Entry: Evidence from Central European Firms 1 The Regional Economics Applications Laboratory (REAL) is a unit in the University of Illinois focusing on the development

More information

Earnings Inequality, Returns to Education and Immigration into Ireland

Earnings Inequality, Returns to Education and Immigration into Ireland Earnings Inequality, Returns to Education and Immigration into Ireland Alan Barrett Economic and Social Research Institute, Dublin and IZA, Bonn John FitzGerald Economic and Social Research Institute,

More information

Wage inequality, skill inequality, and employment: evidence and policy lessons from PIAAC

Wage inequality, skill inequality, and employment: evidence and policy lessons from PIAAC Jovicic IZA Journal of European Labor Studies (2016) 5:21 DOI 10.1186/s40174-016-0071-4 IZA Journal of European Labor Studies ORIGINAL ARTICLE Wage inequality, skill inequality, and employment: evidence

More information

Elder Parent Health and the Migration Decision of Adult Children: Evidence from Rural China

Elder Parent Health and the Migration Decision of Adult Children: Evidence from Rural China Elder Parent Health and the Migration Decision of Adult Children: Evidence from Rural China John Giles Department of Economics Michigan State University Ren Mu Development Research Group The World Bank

More information

Selectivity, Transferability of Skills and Labor Market Outcomes. of Recent Immigrants in the United States. Karla J Diaz Hadzisadikovic

Selectivity, Transferability of Skills and Labor Market Outcomes. of Recent Immigrants in the United States. Karla J Diaz Hadzisadikovic Selectivity, Transferability of Skills and Labor Market Outcomes of Recent Immigrants in the United States Karla J Diaz Hadzisadikovic Submitted in partial fulfillment of the requirements for the degree

More information

Do Remittances Affect Poverty and

Do Remittances Affect Poverty and 1 Do Remittances Affect Poverty and Inequality? Evidence from Mali (work in progress) Flore Gubert, IRD, DIAL and PSE Thomas Lassourd, EHESS and PSE Sandrine Mesplé-Somps, IRD, DIAL The Second International

More information

Economic Voting and Electoral Behaviour: How do Individual, Local and National Factors Affect the Partisan Choice?

Economic Voting and Electoral Behaviour: How do Individual, Local and National Factors Affect the Partisan Choice? Economic Voting and Electoral Behaviour: How do Individual, Local and National Factors Affect the Partisan Choice? Dr Andrew Leigh * andrew.leigh@anu.edu.au www.andrewleigh.com Fellow, Economics Program

More information

Immigrant Earnings Growth: Selection Bias or Real Progress?

Immigrant Earnings Growth: Selection Bias or Real Progress? Catalogue no. 11F0019M No. 340 ISSN 1205-9153 ISBN 978-1-100-20222-8 Research Paper Analytical Studies Branch Research Paper Series Immigrant Earnings Growth: Selection Bias or Real Progress? by Garnett

More information

Understanding inequality and what to do about it

Understanding inequality and what to do about it and what to do about it Miles Corak University of Ottawa, Ottawa Canada Presentation to the All Party Anti-Poverty Caucus House of Commons, Ottawa, February 12th, 2013 Three issues to talk about,... Three

More information

Characteristics of Poverty in Minnesota

Characteristics of Poverty in Minnesota Characteristics of Poverty in Minnesota by Dennis A. Ahlburg P overty and rising inequality have often been seen as the necessary price of increased economic efficiency. In this view, a certain amount

More information

EXTENDED FAMILY INFLUENCE ON INDIVIDUAL MIGRATION DECISION IN RURAL CHINA

EXTENDED FAMILY INFLUENCE ON INDIVIDUAL MIGRATION DECISION IN RURAL CHINA EXTENDED FAMILY INFLUENCE ON INDIVIDUAL MIGRATION DECISION IN RURAL CHINA Hao DONG, Yu XIE Princeton University INTRODUCTION This study aims to understand whether and how extended family members influence

More information

Economic correlates of Net Interstate Migration to the NT (NT NIM): an exploratory analysis

Economic correlates of Net Interstate Migration to the NT (NT NIM): an exploratory analysis Research Brief Issue 04, 2016 Economic correlates of Net Interstate Migration to the NT (NT NIM): an exploratory analysis Dean Carson Demography & Growth Planning, Northern Institute dean.carson@cdu.edu.au

More information

A land of milk and honey with streets paved with gold: Do emigrants have over-optimistic expectations about incomes abroad? *

A land of milk and honey with streets paved with gold: Do emigrants have over-optimistic expectations about incomes abroad? * A land of milk and honey with streets paved with gold: Do emigrants have over-optimistic expectations about incomes abroad? * David McKenzie, Development Research Group, World Bank # John Gibson, University

More information

Migration, Income Pooling and Food Deprivation

Migration, Income Pooling and Food Deprivation Migration, Income Pooling and Food Deprivation Gift Dafuleya 1, Department of Economics, University of Venda Abstract Income pooling in the context of geographically stretched households, that is, households

More information

Living in the Shadows or Government Dependents: Immigrants and Welfare in the United States

Living in the Shadows or Government Dependents: Immigrants and Welfare in the United States Living in the Shadows or Government Dependents: Immigrants and Welfare in the United States Charles Weber Harvard University May 2015 Abstract Are immigrants in the United States more likely to be enrolled

More information

Global Employment Trends for Women

Global Employment Trends for Women December 12 Global Employment Trends for Women Executive summary International Labour Organization Geneva Global Employment Trends for Women 2012 Executive summary 1 Executive summary An analysis of five

More information

Migration Duration and Family Economics : Temporary Migration in China and the One Child Policy

Migration Duration and Family Economics : Temporary Migration in China and the One Child Policy Migration Duration and Family Economics : Temporary Migration in China and the One Child Policy de la Rupelle, Maelys Deng Quheng Abstract Rural-urban migration in China plays an important role in China

More information

Human Development Research Paper 2009/57 Migration and Educational Outcomes of Children. Kristina A. Schapiro

Human Development Research Paper 2009/57 Migration and Educational Outcomes of Children. Kristina A. Schapiro Human Development Research Paper 2009/57 Migration and Educational Outcomes of Children Kristina A. Schapiro United Nations Development Programme Human Development Reports Research Paper October 2009 Human

More information

Migration, remittances and development: African perspective

Migration, remittances and development: African perspective Migration, remittances and development: African perspective Flore Gubert, IRD, DIAL and PSE Improving Migration, Remittances and diaspora data: SDGs and the Global Compact on Migration, Paris, January

More information

Paternal Migration and Education Attainment in Rural Mexico (Job Market Paper)

Paternal Migration and Education Attainment in Rural Mexico (Job Market Paper) Paternal Migration and Education Attainment in Rural Mexico (Job Market Paper) Ao Li Boston University November 14, 2013 Abstract Migration from poor to rich regions has increased dramatically in recent

More information

THE ENGLISH LANGUAGE FLUENCY AND OCCUPATIONAL SUCCESS OF ETHNIC MINORITY IMMIGRANT MEN LIVING IN ENGLISH METROPOLITAN AREAS

THE ENGLISH LANGUAGE FLUENCY AND OCCUPATIONAL SUCCESS OF ETHNIC MINORITY IMMIGRANT MEN LIVING IN ENGLISH METROPOLITAN AREAS THE ENGLISH LANGUAGE FLUENCY AND OCCUPATIONAL SUCCESS OF ETHNIC MINORITY IMMIGRANT MEN LIVING IN ENGLISH METROPOLITAN AREAS By Michael A. Shields * and Stephen Wheatley Price ** April 1999, revised August

More information

The Effect of Migration on Children s Educational Performance in Rural China Abstract

The Effect of Migration on Children s Educational Performance in Rural China Abstract The Effect of Migration on Children s Educational Performance in Rural China Abstract Migration is widely known as one of the main ways of alleviating poverty in developing countries, including China.

More information