Is the complementarity between remittances and human capital development a panacea for income inequality reduction?
by Kunofiwa Tsaurai
International Journal of Services, Economics and Management (IJSEM), Vol. 9, No. 1, 2018

Abstract: This study investigated if international personal remittances (remittances) and human capital development complement each other in reducing income inequality in emerging markets using panel data analysis. Although there seems to be consensus that remittances reduces income inequality despite the existence of divergent and mixed results, the channels through which remittances reduce income inequality has so far received very little attention and it remains an unsettled matter in literature. The study found out that human capital development and remittances complemented each other. Emerging markets should therefore implement human capital development enhancement policies in order to enjoy income inequality reduction advantages associated with remittances inflows.

Online publication date: Fri, 12-Oct-2018

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