Do remittances reduce gender inequalities in developing countries?

Abstract

Combating gender inequality is a central objective of the United Nations Sustainable Development Goals (SDGs). Migrant remittances may play a decisive role in narrowing gender gaps across multiple spheres of life and, by extension, in advancing the SDGs within recipient countries. This study provides a comprehensive crosscountry analysis of remittances' impact on gender inequality, using data from 81 developing nations between 1990 and 2021. This issue has not been explored in depth at an aggregate level, mainly because existing studies have focused on the impact of remittances on gender inequality in specific field or in specific countries, limiting a comprehensive understanding of the impact of remittances on gender inequalities. To overcome this limit, we used the gender inequality index proposed by the United Nations. To deal with endogeneity problems, the instrumental variable technique has been used. The results obtained are robust to the use of alternative variables and alternative estimation methods. The results of this study suggest that remittances reduce gender inequalities in developing countries. Focusing on geographical regions, our results show that the impact of remittances on gender inequality is significant in sub-Saharan Africa and Latin America and the Caribbean. Empirical evidence indicates that remittances possess significant potential recipient countries in reducing the costs of gender inequality, ensuring sustainable and inclusive growth and achieving the Sustainable Development Goals.

Keywords: Remittances, gender inequality, developing countries, Sustainable Development Goals