Measuring the effect of Bi-directional migration remittances on poverty and inequality in Nicaragua

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Publication Type Journal Article
School or College College of Social & Behavioral Science
Department Economics
Creator Jameson, Kenneth P.
Other Author Hobbs, Andrew W.
Title Measuring the effect of Bi-directional migration remittances on poverty and inequality in Nicaragua
Date 2011-01-01
Description This paper examines the impact of migrants' remittances on poverty and income distribution in Nicaragua. Nicaraguan emigrants are fairly evenly distributed between the United States and Costa Rica. Poorer migrants overwhelmingly migrate to Costa Rica; richer migrants favor the United States. This bi-directional flow provides an opportunity to examine the distributional impacts of remittances in a situation that offers distinct opportunities to different groups of prospective migrants. To this end, we use Heckman's (1976) sample selection method to predict counterfactual "no-migration" consumption figures for Nicaraguan households whose members have emigrated. Using these estimates, we are able to compare the current situation to one in which migration had not occurred. We find that migration to Costa Rica results in increased per capita household consumption for poor households, while migration to the United States leads to increases for middle class households. The rate, depth, and severity of poverty as measured by the Foster, Greer, Thorbecke Indices (1984) decrease, though only slightly. However, inequality appears to increase, likely because the middle class benefits from U.S. migration, while the poor tend to make it no farther than Costa Rica.
Type Text
Publisher Taylor & Francis (Routledge)
Volume 44
Issue 19
First Page 2451
Last Page 2460
Language eng
Bibliographic Citation Hobbs, A. W., & Jameson, K. P. (2011). Measuring the effect of bi-directional migration remittances on poverty and inequality in Nicaragua. Applied Economics, 44(19), 2451-60.
Rights Management (c)Taylor & Francis This is an electronic version of an article printed in Hobbs, A. W., & Jameson, K. P. (2011). Measuring the effect of bi-directional migration remittances on poverty and inequality in Nicaragua. Applied Economics, 44(19), 2451-60. Applied Economics is available online at http://www.informaworld.com/smpp/ with the DOI:10.1080/00036846.2011.564153.
Format Medium application/pdf
Format Extent 205,214 bytes
Identifier uspace,16905
ARK ark:/87278/s6q278b5
Setname ir_uspace
Date Created 2014-05-06
Date Modified 2021-05-06
ID 712518
Reference URL https://collections.lib.utah.edu/ark:/87278/s6q278b5
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