'To Have and Have Not': Migration, Remittances, Poverty and Inequality in Algeria

48 Pages Posted: 4 Dec 2013

See all articles by David N. Margolis

David N. Margolis

Centre d'Economie de la Sorbonne; IZA Institute of Labor Economics; World Bank - Social Protection Unit (HDNSP); Paris School of Economics (PSE)

Luis Miotti

Independent; Université Paris XIII Nord

El Mouhoub Mouhoud

Univ. Paris Dauphine

Joel Oudinet

CEPN-CNRS-Université Paris-Nord

Abstract

This article analyses the distributional impact of remittances across two regions of Algerian emigration (Nedroma and Idjeur) using an original survey we conducted of 1,200 households in 2011. Remittances and especially the role played by foreign pensions decrease the Gini index by nearly 4 % for the two Algerian regions, with the effect in Idjeur being twice as large as Nedroma. At the same time, they help reduce poverty by nearly 13 percentage points. Remittances have a strong positive impact on very poor families in Idjeur but much less in Nedroma, where poor families suffer from a “double loss” due to the absence of their migrants and the fact that the latter do not send money home.

Keywords: remittances, migration, poverty, inequality, Algeria

JEL Classification: F24, O15, O55

Suggested Citation

Margolis, David N. and Miotti, Luis and Mouhoud, El Mouhoub and Oudinet, Joel, 'To Have and Have Not': Migration, Remittances, Poverty and Inequality in Algeria. IZA Discussion Paper No. 7747, Available at SSRN: https://ssrn.com/abstract=2363234

David N. Margolis (Contact Author)

Centre d'Economie de la Sorbonne ( email )

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Luis Miotti

Independent ( email )

Université Paris XIII Nord ( email )

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El Mouhoub Mouhoud

Univ. Paris Dauphine ( email )

Place du Marechal de Lattre de Tassigny
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Paris, 75775
France

Joel Oudinet

CEPN-CNRS-Université Paris-Nord ( email )

Université Paris-Nord
99 av JB Clement
Villetaneuse
France

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