Description

This paper uses a nationally-representative household survey from Ghana (1998/99 GLSS) to analyze the impact of internal and international remittances on poverty and inequality in Ghana. Since remittances may be endogenous to household income, the author estimates counterfactual incomes for migrants had they stayed and worked at home. Results suggest that both internal remittances (from Ghana) and international remittances (from African and other countries) reduce the level, depth and severity of poverty in Ghana. On inequality, results suggest that when international remittances are included in household income the Gini coefficient rises by about 3 percent: from 0.402 to 0.413.