TY - JOUR
T1 - On the precarious link between the Gini coefficient and the incentive to migrate
AU - Stark, Oded
AU - Byra, Lukasz
AU - Kosiorowski, Grzegorz
N1 - Publisher Copyright:
© 2019
PY - 2020/2
Y1 - 2020/2
N2 - We offer an explanation for the inconclusive results of empirical studies into the relationship between the magnitude of the Gini coefficient of income distribution at origin and the intensity of migration. Bearing in mind the substantial literature that identifies relative deprivation as an important determinant of migration behavior, we study the relationship between aggregate or total relative deprivation, TRD, the Gini coefficient, G, and migration. We show that for a given change of incomes, TRD and G can behave differently. We present examples where, in the case of universal increases in incomes, TRD increases while G does not change; G decreases while TRD does not change; and G decreases while TRD increases. We generalize these examples into formal criteria, providing sufficient conditions on the initial and final income vectors under which incongruence between the directions of changes of G and of TRD occur. Our analysis leads us to infer that when the incentive to migrate increases with TRD, then this response can co-exist with no change of G or with a decrease of G.
AB - We offer an explanation for the inconclusive results of empirical studies into the relationship between the magnitude of the Gini coefficient of income distribution at origin and the intensity of migration. Bearing in mind the substantial literature that identifies relative deprivation as an important determinant of migration behavior, we study the relationship between aggregate or total relative deprivation, TRD, the Gini coefficient, G, and migration. We show that for a given change of incomes, TRD and G can behave differently. We present examples where, in the case of universal increases in incomes, TRD increases while G does not change; G decreases while TRD does not change; and G decreases while TRD increases. We generalize these examples into formal criteria, providing sufficient conditions on the initial and final income vectors under which incongruence between the directions of changes of G and of TRD occur. Our analysis leads us to infer that when the incentive to migrate increases with TRD, then this response can co-exist with no change of G or with a decrease of G.
KW - Incongruence between measures of inequality
KW - The Gini coefficicent
KW - The incentive to migrate
KW - Total relative deprivation
UR - http://www.scopus.com/inward/record.url?scp=85077929663&partnerID=8YFLogxK
U2 - 10.1016/j.econlet.2019.108880
DO - 10.1016/j.econlet.2019.108880
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AN - SCOPUS:85077929663
VL - 187
JO - Economics Letters
JF - Economics Letters
SN - 0165-1765
M1 - 108880
ER -