"Using the 1986/87 Household Budget Survey of Lesotho, we measure the extent of inequality, identify the determinants of economic well-being and decompose total inequality by population subgroups. The results show large inequality in economic well-being. Many households in Lesotho are heavily dependent on miners' remittances from the Republic of South Africa. In the study we quantify their effects on the level of well-being and the extent of inequality. It is concluded that remittances decrease inequality in Lesotho."