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Volatility widens inequality. Could aid and remittances help?

Chauvet, Lisa; Ferry, Marin; Guillaumont, Patrick; Guillaumont Jeanneney, Sylviane; Tapsoba, Sampawende J.-A.; Wagner, Laurent (2019), Volatility widens inequality. Could aid and remittances help?, Review of World Economics, 155, 1, p. 71-104. 10.1007/s10290-018-0331-7

Type
Article accepté pour publication ou publié
Date
2019
Journal name
Review of World Economics
Volume
155
Number
1
Publisher
Springer
Pages
71-104
Publication identifier
10.1007/s10290-018-0331-7
Metadata
Show full item record
Author(s)
Chauvet, Lisa
Institut de Recherche pour le Développement (IRD)
Développement, institutions et analyses de long terme [DIAL]
Laboratoire d'Economie de Dauphine [LEDa]
Centre d'Études et de Recherches sur le Développement International [CERDI]
Ferry, Marin
Laboratoire d'Economie de Dauphine [LEDa]
Développement, institutions et analyses de long terme [DIAL]
Institut de Recherche pour le Développement (IRD)
Guillaumont, Patrick
Centre d'Études et de Recherches sur le Développement International [CERDI]
Guillaumont Jeanneney, Sylviane
Centre d'Études et de Recherches sur le Développement International [CERDI]
Centre d'Études et de Recherches sur le Développement International [CERDI]
Tapsoba, Sampawende J.-A.
"Research Department International Monetary Fund (IMF)" [IMF]
Wagner, Laurent
Centre d'Études et de Recherches sur le Développement International [CERDI]
Centre d'Études et de Recherches sur le Développement International [CERDI]
Abstract (EN)
We analyse the relationship between income volatility and inequality and the conditional role played by aid and remittances. Using a panel of 142 countries for the period 1973–2012, we confirm a well-established finding among the literature that income volatility has an adverse impact on inequality, and that the poorest people are the most exposed to these fluctuations. However, while aid and remittances do not seem to have a clear direct impact on inequality, we uncover robust evidence that suggests that aid helps dampen the negative effects of volatility on the distribution of income, while remittances do not.
Subjects / Keywords
Volatility; Inequality; Aid; Remittances
JEL
F24 - Remittances
F35 - Foreign Aid
O15 - Human Resources; Human Development; Income Distribution; Migration

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