CEU eTD Collection (2023); Joldoshov, Jodar: Migration, Remittances and Income Inequality in Kyrgyzstan: Evidence from the Life in Kyrgyzstan Survey

CEU Electronic Theses and Dissertations, 2023
Author Joldoshov, Jodar
Title Migration, Remittances and Income Inequality in Kyrgyzstan: Evidence from the Life in Kyrgyzstan Survey
Summary This paper estimates the impact of remittances on the degree of income inequality using the latest wave of the Life in Kyrgyzstan survey for the year 2016. The objective of the paper is to find out how international remittances affect income distribution in such remittances-dependent country as Kyrgyzstan and to assess the magnitude of the effect. The identification strategy relies on the probit model with the application of propensity score matching technique to estimate the causal impact. Remittances are considered as treatment, and propensity score matching allows for the comparability of treated and control groups by reducing the treatment assignment bias. Based on the regression analysis, I find evidence for the positive marginal impact of foreign remittances on more equal income distribution in Kyrgyzstan, though the effect is practically small. The separate estimation for the sub-sample of rural households finds that migration and remittances positively impact income inequality in rural areas, with the effect being similar to that estimated for the overall sample of households. Unfortunately, a very small number of urban migrant households does not allow for proper Propensity Score Matching estimation for the urban sub-sample.
Supervisor Horvath, Julius
Department Economics MA
Full texthttps://www.etd.ceu.edu/2023/joldoshov_jodar.pdf

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