Kiel Working Papers, Kiel Institute for World Economics
No 1742:
Whole-household Migration, Inequality and Poverty in Rural Mexiko
Aslihan Arslan and J. Edward Taylor
Abstract: Whole-household migration potentially can alter the
results of studies on income inequality based on panel data if it selects
on household income. We model whole-household migration and its impacts on
income inequality and poverty using a unique, nationally representative
household panel data set from rural Mexico. Households that participate in
whole-household migration and those who do not differ significantly in
terms of observable characteristics; however, analyses of income and
poverty based on the remaining sample are not necessarily biased. This
finding is similar to those in previous research on the effects of
attrition on panel data studies. We also analyze the changes in inequality
and poverty due to whole-household migration and over time correcting for
the effects of attrition. Our results support the migration diffusion
hypothesis and underline the importance of paying attention to selective
attrition in panel data studies on income distribution and poverty –
especially in countries and regions with high migration rates
Keywords: Attrition, panel data, income inequality, poverty, joint migration, Mexico; (follow links to similar papers)
JEL-Codes: C23,; O15; (follow links to similar papers)
24 pages, November 2011
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