Migration stage and household income inequality: Evidence from the Valle Alto of Bolivia

A three-stage diffusion model of international migration and inequality posits that household income inequality first increases, then decreases, and finally increases again as a community's migration experience deepens. Analysis of data from a survey of 417 households in the Valle Alto region of Bolivia supports this model. Concomitant with the region's overall position in the middle stage, the results indicate that income inequality among active migrant households is less than that of non-migrant households, suggesting that migration reduces inequality. Furthermore, income inequality between urban and rural areas is diminished by migration. Individual towns in the region, however, illustrate all three stages of the diffusion model. The study supports other research showing that the middle stage of migration generates the most remittances, the highest commitment of resources to the home community, and the lowest inequalities among households.

► In emigrant regions, household income inequality relates to migration stage.
► The Valle Alto of Bolivia is in the middle stage and exhibits declining inequality.
► Inequality between urban and rural areas is also decreasing, due to migration.
► Individual towns exhibit a non-linear relationship between inequality and stage.