The study examines the relationship between international remittances and income inequality in Afghanistan by analysing how remittances affect income inequality in the Samangan province.
Primary data were collected by administering a questionnaire to 325 households in the Samangan province using a multi-stage sampling approach. Income distribution was measured using the Gini coefficient.
There were an average of 8 members and 1.5 migrants in each household, with the mean age of respondents being 35. Remittances formed about 25% of the household income and had a slight negative effect on income inequality, with a 1% increase in remittances leading to a 0.04% decrease in inequality.
The data were collected in one province. The findings underline the need to develop policies that foster peace and stability through reducing inequality.
International remittances can form a significant portion of household income in conflict-affected and post-conflict societies. The effect of remittances on income distribution can help us understand where development efforts need to be channelled and how businesses can best operate in challenging circumstances.
This is the only study to our knowledge that looks at the effects of migration and remittances on income inequality in Afghanistan.
