South-South Migration and Inequality. Effects of Paraguayan Migration in Sending Areas

GÓMEZ, PABLO SEBASTIÁN

Berlín

Conferencia; Social Inequalities and Global Interdependencies: Latin American Configurations. Inaugural Conference; 2010

Instituto Ibero-Americano (IAI) de Berlín

I m interested in three concrete empirical dimensions of social inequalities in sending areas of Paraguay: first, the impact of international migration on school retention rates, migration will impact in human capital in the source country. Second, the labor force participation of the households, international migration can have various effects on labor markets in sending countries. On the one hand, remittances may allow recipients to overcome the type of liquidity constraints that prevent the creation of new entrepreneurial enterprises. On the other hand, remittances can also reduce labor force participation by increasing the level of minimum wages at which members of migrant households are willing to work (the reservation wage). Finally,  the impact on poverty and inequality. International remittances represent 30 to 40 percent of migrant household incomes and the impact on these issues is controversial. Analytical work on the impact of migration is made more complex by three sets of challenges. The first group of issues is related to data and definitions. The second group relates to the intrinsic endogeneity and selectivity involved in decisions surrounding migration. Finally, the third group of problems arises due to the multiple indirect socioeconomic effects of migration. These issues have implications for the formulation of appropriate research questions and the design of methodologies.