Migration, remittances, and inequality: estimating the net effects of migration on income distribution

Well-being effect of international migration and remittance on human and gender development in South Asian countries

This study investigates the well-being effect of international migration and remittance on human and gender development in selected South Asian countries. The study has adopted panel regression analysis using secondary data from the World Development Indicators and United Nations Development Programme. This database contains information on seven South Asian countries from 1995 to 2020. The study simultaneously applied the Levin-Lin-Chu, Breitung and IM-Pesaran unit root tests to check the stationarity of data. After satisfying the condition, econometric models such as Fixed and Random Effects were executed. Pesaran's test of cross-sectional independence, the Westerlund test for cointegration and VIF tests were performed in order to check the robustness of the results. As a post-diagnostic tool, the Hausman test suggests that the Fixed Effect models are appropriate for each estimation. The results demonstrate that personal remittance positively and significantly affects human and gender development. Similarly, international migration significantly influences human development while negatively affecting gender development. The study suggests that these countries should prioritize attaining higher remittances by sending more international migrants. Similarly, the provision of cheaper formal channels for remitting money and giving incentives can be effective for higher remittance inflow. Moreover, negotiation at the government-to-government level can effectively expand the international labour market of the selected countries.

The Promotional Effect of Health Education on the Medical Service Utilization of Migrants: Evidence From China

There were 376 million migrants in China by 2020, who made significant contributions to urban development. However, they used limited medical services and had lower self-reported health status than inflow city residents. Based on this, this study uses the cross-sectional data of the 2017 China Migrants Dynamic Survey (CMDS) to construct a multiple linear regression model to empirically study the role of health education in improving medical services utilization for migrants. It finds that compared to migrants without health education, the probability of the medical service utilization for migrants with health education has increased significantly, and counseling is more effective than other methods for health education. This promotion effect of health education has been established after a series of robustness tests. Furthermore, this study finds that the closer the migrants are to medical service resources, the greater the effect of health education on medical services utilization for migrants. The heterogeneity test shows that the effect of health education on medical services utilization for migrants is greater among the non-elderly and those with lower education levels. From the perspective of health education, the findings in this study provide empirical evidence to support the government in formulating policies to improve the utilization of medical services for migrants and reduce health inequality.

The Dynamics of Remittances Impact: A Mixed-Method Approach to Understand Ghana’s Situation and the Way Forward

Many scholarly articles on remittance have focused on its positive or negative impact on the macro- or microeconomy. Given that trend, remittance is usually analysed without its sociological elements embedded within the migration process. Therefore, this paper employs a bird’s eye view to advance our understanding of the dynamics of remittance within the Ghanaian migration framework. By this, the paper uses a mixed-method approach to shed light on the Ghana case. First, through multiple linear regression, the paper shows that remittance inflow to Ghana is positively related to GDP per capita. Specifically, the evidence indicates that a 1% increase in remittance leads to an approximately 4% increase in the GDP per capita. Second, with the aid of household survey data from Ghana Statistical Service and Ghana’s poverty dimension, the paper shows that while the empirical finding suggests an improvement of the populace’s standard of living, the evidence on the grounds, however, conflicts with such findings. This is because remittance is primarily a private resource and is likely to reach only a few well-off homes in Ghana; hence, it does not consider an effective redistributive dimension. Third, to further elucidate why remittance reaches these few groups, the paper analyses within the Marxist political framework how legal migration to the developed countries has always been an option only for the well-off and middle-class Ghanaians who could afford the cost. With this clear establishment of the remittance dynamics in Ghana, the study proposes plausible suggestions to enhance the redistributive effect of remittance in Ghana. In particular, the study recommends a state-led online app for migrants to send money to Ghana. Notably, the state should champion this agenda because subsidising the transaction fees would make it relatively cheaper for migrants. While this would encourage migrants to use the official means, which undoubtedly is significant for the macroeconomy, the app’s returns could be used in addressing the country’s social inequality gap at the micro-level.

An Asymmetric Investigation of Remittance and Trade Openness Impact on Inequality: Evidence From Selected South Asian Countries

This study's motivation is to explore the relationship pattern between remittance, trade openness, and inequality of selected south Asian countries for the 1976-2018 period. The study performed non-linear tests, including unit root tests, non-linearity applying ordinary least squares (OLS) and BDS tests, non-linear autoregressive distributed lagged (NARDL) tests, and asymmetry causality tests to assess their association. Study findings with non-linear unit root tests suggest that the research variables follow the non-linear process of becoming stationary from non-stationary. The non-linear OLS and BDS test results confirm the existence of non-linearity among research variables, implying rejection of the null hypothesis of "no non-linearity." Furthermore, the results of the Wald test in NARDL confirm the availability of asymmetric links among variables. Besides this, the results of NARDL confirm the long-run asymmetric relationship between remittances, trade openness, and inequality in all sample nations. Findings suggest that both positive and negative shocks in remittances and trade openness is critical to either instituting or vexing the present state of inequality in the economy in the long term. In the directional relationship with asymmetry causality, the study shows that the feedback hypothesis holds to explain the asymmetric causal effects that are positive shocks in remittances and trade openness toward inequality.

Factor Decomposition of the Changes in the Rural Regional Income Inequality in Southwestern Mountainous Area of China

This study aimed to determine factors of rural income inequality changes in Aba Tibetan and Qiang Autonomous Prefecture, Sichuan, China, to help formulate measures to reduce regional inequality and alleviate poverty in the southwestern mountainous area of China, which experiences frequent natural disasters and poor living conditions. Changes in rural income inequality are examined, which are then decomposed into different component factors based on the Gini index. Income inequality is comprised of four types of income source: wages, household operations, properties, and transfers. This analysis focuses on the period of 2003 to 2011—a special transitional stage during which the Wenchuan earthquake intervened. The results indicate that income from household operations plays a dominant role in income inequality. Its contribution to the overall inequality fluctuates from 36.40 to 50.39% and had a positive effect on reducing inequality after the earthquake. Wage income contributed the second-most to income inequality and had positive and negative effects on reducing inequality before and after the earthquake, respectively. Transfer and property incomes are important forces in income inequality that have different influencing mechanisms. Transfer income positively helps reduce income inequality. Exclusive favors or preferences should be granted to such areas.

Multilevel Modeling of Rural Livelihood Strategies from Peasant to Village Level in Henan Province, China

With the rapid development of China’s economy, Chinese peasants now have a growing number of livelihood choices. Rural livelihood strategies are primarily a matter of choice, while the characteristics of the household and village may affect the decision-making process. However, until now, there has been a lack of empirical studies that have been carried out for the identification of the multi-level determinants of rural livelihood strategies. To fill this gap, this paper applies multi-level modeling approach to model rural livelihood strategies in Henan Province, China. The results show that rural livelihood strategies have insignificant between-group variability at the household level, and significant between-group variability at the village level, with the variance at the peasant level accounting for the largest proportion of the total variance. Younger peasants who are male and have a higher education level are more likely to engage in only off-farm work, while peasants with the opposite characteristics are more likely to engage in only on-farm work. Pluriactive peasants integrate the characteristics of the other two groups, and generally live closer to urban areas than the others. In order to reduce rural income inequality and sustain agricultural production, the Chinese government should design effective policies to make farming an appealing livelihood choice, particularly for the young generation.

A Panel Data Analysis of Relationship between Migration and Inequality

In this article, the relationship between migration and inequality in India is analyzed on the basis of an understanding of the role of migration in creating inequalities in the economy and society of the state of Kerala. The Centre for Development Studies (CDS), Thiruvanathapuram, Kerala, conducts periodic Kerala Migration Surveys (KMSs) to monitor the current status of emigration from and return emigration to the state of Kerala. This data set is used to discover the dynamics of migration–inequality relationship in the state. The results of the study suggest that migration causes inequalities in mobility between migrant and non-migrant households and between different types of migrant households.

Individual Aspiration or Family Survival: Rural-Urban Female Migration in Malaysia

This paper analyzes the determinants of female migration to export processing zones (EPZs) in Malaysia. A comparison of the individual and household migration models reveals interesting and important contrasting results. First, the role played by the expected net income gains is opposite in the two models: negative in the individual model, positive in the household model. Second, family migration experience is significant in the individual model but not in the household model. Third, attitudes matter to the household decision on a daughter's migration but not in the individual model. These contrasting results suggest that explaining the daughter's migration decision may require more than separation of the individual motives and familial needs.

The role of international remittances in health outcomes in Ecuador: prevention and response to shocks

This article evaluates the impact of remittances on health outcomes in Ecuador using an instrumental-variables approach. Although we do not find significant impacts on long-term child health variables, we find that remittances do have an impact on health expenditures, and on some preventive issues such as de-worming and vaccination. In addition, we find significant effects of remittances on medicine expenditures when illness occurs. In this regard, remittances are used for both preventive and emergency situations. Interestingly, we also find a significant and positive effect of remittances on health knowledge.

Repeat migration and remittances as mechanisms for wealth inequality in 119 communities from the Mexican Migration Project data

To evaluate the distributional impact of remittances in origin communities, prior research studied how migrants' selectivity by wealth varies with migration prevalence in the community or prior migration experience of the individual. This study considers both patterns; it examines selectivity separately in low- and high-prevalence communities and for first-time and repeat migrants. Based on data from 18,042 household heads in 119 Mexican communities from the Mexican Migration Project, the analyses show that (1) first-time migrants in low-prevalence communities come from poor households, whereas repeat migrants in high-prevalence communities belong to wealthy households; and (2) higher amounts of remittances reach wealthy households. These results suggest that repeat migration and remittances may be mechanisms for wealth accumulation in the study communities. Descriptive analyses associate these mechanisms with increasing wealth disparities between households with and without migrants, especially in high-prevalence communities. The study, similar to prior findings, shows the importance of repeat migration trips, which, given sustained remittances, may amplify the wealth gap between migrants and nonmigrants in migrant-sending communities. The study also qualifies prior findings by differentiating between low- and high-prevalence communities and observing a growing wealth gap only in the latter.

THE HIV–POVERTY THESIS RE-EXAMINED: POVERTY, WEALTH OR INEQUALITY AS A SOCIAL DETERMINANT OF HIV INFECTION IN SUB-SAHARAN AFRICA?

Although health is generally believed to improve with higher wealth, research on HIV in sub-Saharan Africa has shown otherwise. Whereas researchers and advocates have frequently advanced poverty as a social determinant that can help to explain sub-Saharan Africa's disproportionate burden of HIV infection, recent evidence from population surveys suggests that HIV infection is higher among wealthier individuals. Furthermore, wealthier countries in Africa have experienced the fastest growing epidemics. Some researchers have theorized that inequality in wealth may be more important than absolute wealth in explaining why some countries have higher rates of infection and rapidly increasing epidemics. Studies taking a longitudinal approach have further suggested a dynamic process whereby wealth initially increases risk for HIV acquisition and later becomes protective. Prior studies, conducted exclusively at either the individual or the country level, have neither attempted to disentangle the effects of absolute and relative wealth on HIV infection nor to look simultaneously at different levels of analysis within countries at different stages in their epidemics. The current study used micro-, meso- and macro-level data from Demographic and Health Surveys (DHS) across 170 regions within sixteen countries in sub-Saharan Africa to test the hypothesis that socioeconomic inequality, adjusted for absolute wealth, is associated with greater risk of HIV infection. These analyses reveal that inequality trumps wealth: living in a region with greater inequality in wealth was significantly associated with increased individual risk of HIV infection, net of absolute wealth. The findings also reveal a paradox that supports a dynamic interpretation of epidemic trends: in wealthier regions/countries, individuals with less wealth were more likely to be infected with HIV, whereas in poorer regions/countries, individuals with more wealth were more likely to be infected with HIV. These findings add additional nuance to existing literature on the relationship between HIV and socioeconomic status.

Determinants and impacts of international remittances on household welfare in Vietnam

Remittances can potentially help to promote economic development by providing a mechanism to share risks, reduce poverty and improve equality. However, from the viewpoint of economic theory the overall impacts of remittances are uncertain, as different mechanisms lead to opposite impacts. Since the 1990s Vietnam has experienced a dramatic growth in remittance flows from abroad. Vietnam is a unique case for study, as economic motives historically played a smaller role in outward migration than in other countries. Fortunately, household survey data are available for this time period, allowing for a detailed analysis of the impacts of international remittances on Vietnam. Specifically, we examine the characteristics of recipients and the impacts of international remittances on economic inequality and poverty. We conclude that international remittances are helping to improve equality. For this reason, new development policies must also account for their potential impacts on remittance flows.