What is the magnitude of informal transfers and the effect on poverty reduction?
For those countries where data exists, the evidence is that patterns of private transfers vary according to local conditions. Estimates are that transfers account for between 2 and 41 percent of income for net receivers and between 1and 8 percent of income for net givers. The patterns of informal transfers reveal the following general trends: Some general trends in informal transfers have been studied. Evidence suggests that the bulk of informal transfers flow from older to younger households. Poor and vulnerable households are more likely to receive private transfers, while non-poor households are more likely to give private transfers. Informal transfers may therefore equalize the distribution of income. Household characteristics other than income (such as gender of household head, education level, ethnicity) also affect the pattern of informal transfers. For example, female-headed households appear to be more likely to receive transfers. In the United States, at least, the probabilit
