On the Precarious Link Between the Gini Coefficient and the Incentive to Migrate

ZEF-Discussion Papers on Development Policy No. 291, 2020

17 Pages Posted: 10 Mar 2020

See all articles by Oded Stark

Oded Stark

University of Bonn; University of Warsaw; University of Tuebingen

Lukasz Byra

University of Warsaw - Faculty of Economic Sciences

Grzegorz Kosiorowski

Cracow University of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: February 10, 2020

Abstract

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.

Keywords: The Gini Coefficient, Total Relative Deprivation, the Incentive to Migrate, In-congruence Between Measures of Inequality

JEL Classification: D31, D63, F22, O15, R23

Suggested Citation

Stark, Oded and Byra, Lukasz and Kosiorowski, Grzegorz, On the Precarious Link Between the Gini Coefficient and the Incentive to Migrate (February 10, 2020). ZEF-Discussion Papers on Development Policy No. 291, 2020, Available at SSRN: https://ssrn.com/abstract=3535396 or http://dx.doi.org/10.2139/ssrn.3535396

Oded Stark (Contact Author)

University of Bonn

Walter-Flex-Str. 3
Bonn, NRW 53113
Germany

University of Warsaw

Dluga Street 44/50
Warsaw, 00-241
Poland

University of Tuebingen

Wilhelmstr. 19
Tuebingen, Baden Wuerttemberg 72074
Germany

Lukasz Byra

University of Warsaw - Faculty of Economic Sciences ( email )

Dluga Street 44/50
Warsaw, 00-241
Poland
+48 22 55 49 111, +48 22 55 49 (Phone)
+48 22 831 28 46 (Fax)

Grzegorz Kosiorowski

Cracow University of Economics ( email )

ul. Rakowicka 27
Krakow, 31-510
Poland

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