The Impact of Remittances on Rural Poverty and Inequality in China

The Impact of Remittances on Rural Poverty and Inequality in China
Author: Nong Zhu
Publisher: World Bank Publications
Total Pages: 32
Release: 2008
Genre: Access to Finance
ISBN:

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Abstract: Large numbers of agricultural labor moved from the countryside to cities after the economic reforms in China. Migration and remittances play an important role in transforming the structure of rural household income. This paper examines the impact of rural-to-urban migration on rural poverty and inequality in the case of Hubei province using the data of a 2002 household survey. Since remittances are a potential substitute for farm income, the paper presents counterfactual scenarios of what rural income, poverty, and inequality would have been in the absence of migration. The results show that, by providing alternatives to households with lower marginal labor productivity in agriculture, migration leads to an increase in rural income. In contrast to many studies that suggest the increasing share of non-farm income in total income widens inequality, this paper offers support for the hypothesis that migration tends to have egalitarian effects on rural income for three reasons: (i) migration is rational self-selection - farmers with higher agricultural productivities choose to remain in local agricultural production while those with higher expected return in urban non-farm sectors migrate; (ii) poorer households facing binding constraints of land shortage are more likely to migrate; and (iii) the poorest poor benefit disproportionately from remittances.

The Impact of Remittances on Rural Poverty and Inequality in China

The Impact of Remittances on Rural Poverty and Inequality in China
Author: Nong Zhu
Publisher:
Total Pages:
Release: 2012
Genre:
ISBN:

Download The Impact of Remittances on Rural Poverty and Inequality in China Book in PDF, Epub and Kindle

Large numbers of agricultural labor moved from the countryside to cities after the economic reforms in China. Migration and remittances play an important role in transforming the structure of rural household income. This paper examines the impact of rural-to-urban migration on rural poverty and inequality in the case of Hubei province using the data of a 2002 household survey. Since remittances are a potential substitute for farm income, the paper presents counterfactual scenarios of what rural income, poverty, and inequality would have been in the absence of migration. The results show that, by providing alternatives to households with lower marginal labor productivity in agriculture, migration leads to an increase in rural income. In contrast to many studies that suggest the increasing share of non-farm income in total income widens inequality, this paper offers support for the hypothesis that migration tends to have egalitarian effects on rural income for three reasons: (i) migration is rational self-selection - farmers with higher agricultural productivities choose to remain in local agricultural production while those with higher expected return in urban non-farm sectors migrate; (ii) poorer households facing binding constraints of land shortage are more likely to migrate; and (iii) the poorest poor benefit disproportionately from remittances.

The Impact of Remittances on Rural Poverty and Inequality in China

The Impact of Remittances on Rural Poverty and Inequality in China
Author: Xubei Luo
Publisher:
Total Pages: 32
Release: 2016
Genre:
ISBN:

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Large numbers of agricultural labor moved from the countryside to cities after the economic reforms in China. Migration and remittances play an important role in transforming the structure of rural household income. This paper examines the impact of rural-to-urban migration on rural poverty and inequality in the case of Hubei province using the data of a 2002 household survey. Since remittances are a potential substitute for farm income, the paper presents counterfactual scenarios of what rural income, poverty, and inequality would have been in the absence of migration. The results show that, by providing alternatives to households with lower marginal labor productivity in agriculture, migration leads to an increase in rural income. In contrast to many studies that suggest the increasing share of non-farm income in total income widens inequality, this paper offers support for the hypothesis that migration tends to have egalitarian effects on rural income for three reasons: (i) migration is rational self-selection - farmers with higher agricultural productivities choose to remain in local agricultural production while those with higher expected return in urban non-farm sectors migrate; (ii) poorer households facing binding constraints of land shortage are more likely to migrate; and (iii) the poorest poor benefit disproportionately from remittances.

The Effects of International Remittances on Poverty, Inequality, and Development in Rural Egypt

The Effects of International Remittances on Poverty, Inequality, and Development in Rural Egypt
Author: Richard H. Adams
Publisher: Intl Food Policy Res Inst
Total Pages: 92
Release: 1991-01-01
Genre: Social Science
ISBN: 0896290891

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Study based on a household survey conducted by the International Food Policy Research Institute (IFPRI) between September 1986 and May 1987 in three villages in the Minya governate.

Migration and Poverty Alleviation in China

Migration and Poverty Alleviation in China
Author: Dewen Wang
Publisher: International Organization for Migration (IOM)
Total Pages: 48
Release: 2007
Genre: Business & Economics
ISBN:

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China has achieved remarkable progress in poverty alleviation since the start of its reform process, with rural poverty having dropped from 30.7 per cent in 1978 to 2.6 per cent in 2005. Rural-urban labour migration on an unprecedented scale played a vital role in rural income growth, poverty reduction and economic development. Empirical evidence shows that while the vast rural to urban migration does not significantly increase urban income poverty, labour market discrimination and social exclusion expose rural migrants to many risks and vulnerabilities in the cities, where the poor are becoming increasingly marginalised. Capacity building for the poor, the adoption of an integrated labour market system that also takes account of migrants, and the creation a of rural social security system are the three important poverty alleviation options promoted by the government. Although migration in China has unique institutional characteristics owing to the existence of the hukou system (Household Registration System), the experience of China has important lessons for our understanding of the impact of migration on development and poverty reduction.

Growth, Inequality, and Poverty in Rural China

Growth, Inequality, and Poverty in Rural China
Author: Shenggen Fan
Publisher: Intl Food Policy Res Inst
Total Pages: 90
Release: 2002-01-01
Genre: Business & Economics
ISBN: 0896291286

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Growth, inequality, and poverty; Public capital e investment; Concptual framework and model; Data, estimation, and results.

Rural Poverty, Growth, and Inequality in China

Rural Poverty, Growth, and Inequality in China
Author: Yangyang Shen
Publisher: Springer Nature
Total Pages: 292
Release: 2022-02-24
Genre: Business & Economics
ISBN: 9811696551

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This book aims to empirically and theoretically study how the economic growth and inequality affected China’s rural poverty since China’s reform and opening-up. Apart from the trickle-down effect, some empirical researches show that rising inequality usually links with unfairly shared of the economic growth, which is not good for the poor, and this book particularly concerns with the impact of inequality on poverty reduction. In 11 chapters, it leads readers to review the dynamic changes of rural poverty in China, and estimates rural poverty by various methods, for instance, with analysis by monetary poverty (including income and expenditure poverty), multidimensional poverty, absolute poverty, and relative poverty. Especially attention is paid to apply the “growth-inequality-poverty triangle” model for long-term poverty dynamic changes evaluation. The book revisits poverty reduction strategies in different development periods for rural China and evaluates the poverty eradication achievements stage-by-stage under different analytical methods, in order to provide an objective assessment. Among the chapters, pro-poor growth, Shapley decomposition, poverty elasticity, density estimation, multidimensional poverty analysis, and policy simulation methods are applied for both national wide discussion and rural sub-group heterogeneity analysis. In addition to students, teachers, and researchers in the areas of development, economic growth, equity, and welfare, the book is also of great interest to policy makers, planners, and non‐government agencies who are concerned with understanding and addressing poverty-related issues in the developing countries.

How Do Migration and Remittances Affect Inequality? A Case Study of Mexico

How Do Migration and Remittances Affect Inequality? A Case Study of Mexico
Author: Zsoka Koczan
Publisher: International Monetary Fund
Total Pages: 21
Release: 2018-06-14
Genre: Business & Economics
ISBN: 1484361636

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The poverty-reducing effects of remittances have been well-documented, however, their effects on inequality are less clear. This paper examines the impact of remittances on inequality in Mexico using household-level information on the receiving side. It hopes to speak to their insurance role by examining how remittances are affected by domestic and external crises: the 1994 Mexican Peso crisis and the Global Financial Crisis. We find that remittances lower inequality, and that they become more pro-poor over time as migration opportunities become more widespread. This also strengthens their insurance effects, mitigating some of the negative impact of shocks on the poorest.