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Migration, Remittances and Moral Hazard. Evidence from the Kayes Area (Western Mali)

Author

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  • Flore GUBERT

Abstract

This article uses recent survey data from the Kayes area (Western Mali) to estimate the effect of migration and remittances on the technical efficiency of agricultural households. A theoretical model is developed, which shows that the more insurance is provided by the migrants, the less incentive their families have to work. A production function using panel data with household-specific fixed effects is estimated to test this hypothesis. The probability of being financially supported by migrants is found to significantly contribute to technical inefficiency. This result should help agricultural policy makers formulate more efficient development strategies in the area.

Suggested Citation

  • Flore GUBERT, 2000. "Migration, Remittances and Moral Hazard. Evidence from the Kayes Area (Western Mali)," Working Papers 200017, CERDI.
    • Handle: RePEc:cdi:wpaper:144
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    File URL: http://publi.cerdi.org/ed/2000/2000.17.pdf
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    Citations

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    Cited by:

    1. Hussain, Mushahid, 2013. "Migrants’ Remittances and State Behaviour in the Neoliberal Era," EY International Congress on Economics I (EYC2013), October 24-25, 2013, Ankara, Turkey 227, Ekonomik Yaklasim Association.
    2. Mariapia Mendola, 2004. "Migration and Technological Change in Rural Households: Complements or Substitutes?," Development Working Papers 195, Centro Studi Luca d'Agliano, University of Milano.
    3. Jaime Lara, 2016. "Remittances as an Insurance Mechanism in the Labor Market," Journal of Labor Research, Springer, vol. 37(3), pages 368-387, September.
    4. Hagen-Zanker, Jessica, 2010. "Modest expectations: Causes and effects of migration on migrant households in source countries," MPRA Paper 29507, University Library of Munich, Germany.
    5. Nguyen, Duc Loc & Grote, Ulrike, 2015. "Migration, Agricultural Production and Diversification: A case study from Vietnam," 2015 Conference, August 9-14, 2015, Milan, Italy 229379, International Association of Agricultural Economists.
    6. Piracha, Matloob & Saraogi, Amrita, 2013. "Remittances and Migration Intentions of the Left-Behind," IZA Discussion Papers 7779, Institute of Labor Economics (IZA).
    7. Pan, Zehan & Xu, Wei & Wang, Guixin & Li, Sen & Yang, Chuankai, 2020. "Will remittances suppress or increase household income in the migrant-sending areas? Modeling the effects of remittances in rural China," China Economic Review, Elsevier, vol. 61(C).

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