The Journal of Economic Inequality

, Volume 8, Issue 2, pp 197–220 | Cite as

Remittances and inequality: a dynamic migration model

  • I-Ling Shen
  • Frédéric Docquier
  • Hillel Rapoport


We develop a model to study the effects of migration and remittances on inequality in the origin communities. While wealth inequality is shown to be monotonically reduced along the time-span, the short- and the long-run impacts on income inequality may be of opposite signs, suggesting that the dynamic relationship between migration/remittances and inequality may well be characterized by an inverse U-shaped pattern. This is consistent with the findings of the empirical literature, yet offers a different interpretation from the usually assumed migration network effects. With no need to endogenize migration costs through the role of migration networks, we generate the same results via intergenerational wealth accumulation.


Inequality Migration Remittances 


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Copyright information

© Springer Science+Business Media, LLC. 2009

Authors and Affiliations

  • I-Ling Shen
    • 1
  • Frédéric Docquier
    • 1
    • 2
  • Hillel Rapoport
    • 3
    • 4
    • 5
    • 6
  1. 1.IRES and Department of EconomicsUniversité catholique de LouvainLouvain-la-NeuveBelgium
  2. 2.Fonds National de la Recherche ScientifiqueWalloniaBelgium
  3. 3.Department of EconomicsBar-Ilan UniversityRamat-GanIsrael
  4. 4.EQUIPPEUniversity of LilleLilleFrance
  5. 5.CReAMUniversity College LondonLondonUK
  6. 6.CEPREMAPParisFrance

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