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WP/013 Social Policies or Private Solidarity?: The Equalizing Role of Migration and Remittances in El Salvador

This paper reviews the pattern of poverty rates and income inequality in El Salvador since the 1990s. It discusses some of the likely factors that explain the reduction in income inequality that has taken place in the country in the last decade, which paradoxically has coincided with the long period of economic stagnation that has followed dollarization since 2001. After examination of the available evidence, we conclude that this trend has been mainly due to the equalizing effect of migration and remittances (that is, a ‘private safety net’ built around solidarity within families) rather than the distributive effect of public social expenditure or other public policies.
Publisher:
UNU-WIDER
Series:
WIDER Working Paper
Volume:
2012/13
Title:
WP/013 Social Policies or Private Solidarity?: The Equalizing Role of Migration and Remittances in El Salvador
Authors:
Carlos Acevedo and Maynor Cabrera
Publication date:
February 2012
ISBN 13 Web:
978-92-9230-476-8
Copyright holder:
© UNU-WIDER
Copyright year:
2012
Keywords:
El Salvador, remittances, migration, inequality, poverty, labour market
JEL:
D63, E24, I32, J61
Project:
The New Policy Model, Inequality and Poverty in Latin America: Evidence from the Last Decade and Prospects for the Future
Sponsor:
UNU-WIDER gratefully acknowledges the financial contributions to the research programme by the governments of Denmark (Ministry of Foreign Affairs), Finland (Ministry for Foreign Affairs), Sweden (Swedish International Development Cooperation Agency—Sida) and the United Kingdom (Department for International Development).
Format:
online
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