Cross-country analyses in Africa (Anyanwu and Erhijakpor 2010) and in Latin America (Barham and Boucher 1998) indicate that remittance is related to greater income inequality.9 It has been argued that when professionals and skilled workers migrate it creates important gaps in their country of origin, undermining the cause of structural change that the higher flow of remittances was expected to contribute to in the first place. This ‘brain drain argument is a powerful one, particularly for countries with an acute shortage of skilled and professional workers. The ‘Dutch disease’ effect originating from high remittance flows has also been noted as a concern (Fajnzylber and Lopez 2007).