Urban-Rural Income Transfers in Kenya: An Estimated-Remittances Function

This paper examines the phenomenon of urban-rural income transfers. data was collected as part of the Nairobi Urban Study, which included on basic socio-economic variables as well as on income remittances. sample was confined to African low and middle income areas. The data analysed by regression analysis using variables of income remitted, earned, wives and children both in and out of Nairobi and indices the workers attachment to the urban versus his rural area. The results that the amount that an individual transfers is systematically to income and other socio-economic variables, and that the total represents about a fifth of the urban wage bill. final section discusses some of the implications of the findings, the extent to which the welfare of urban and rural residents interlinked; the importance of the number and closeness of relatives the high wage sector, and the implications of the decline of the of income remitted as wages rise.