%0 Generic
%A Docquier, F.
%A Rapoport, H.
%A Shen, I.-L.
%C London, UK
%D 2006
%F discovery:14287
%I Centre for Research and Analysis of Migration
%K JEL Classification: O11, O15, J61, D31. Migration, remittances, inequality
%N 14/06
%T Remittances and inequality: a dynamic migration model
%U https://discovery.ucl.ac.uk/id/eprint/14287/
%X We develop a model to study the effects of migration and remittances on inequality  in the origin communities. While wealth inequality is shown to be monotonically  reduced along the time-span, the short- and the long-run impacts on income  inequality may be of opposite signs, suggesting that the dynamic relationship  between migration/remittances and inequality may well be characterized by an  inverse U-shaped pattern. This is consistent with the findings of the empirical  literature, yet offers a different interpretation from the usually assumed migration  network effects. With no need to endogenize migration costs through the role of  migration networks, we generate the same result via intergenerational wealth  accumulation.