Abundance from Abroad: Migrant Income and Long-Run Economic DevelopmentIndian Rupee
Abstract
We study how international migrant income prospects affect long-run development in origin areas. We leverage the 1997 Asian Financial Crisis exchange rate shocks in a shift-share identification strategy across Philippine provinces. Initial migrant income shocks are magnified six-fold over time, increasing domestic income, education levels, migrant skills, and high-skilled migration. Remarkably, 74.9 percent of long-run income gains come from domestic rather than migrant income. Trade driven impacts of exchange rate shocks are orthogonal to effects via migrant income. A structural model reveals that 19.7 percent of long-run income gains stem from educational investments. International migration fosters broad economic development in origin communities.
Repository Citation
Khanna, Gaurav, Emir Murathanoglu, Caroline Theoharides, and Dean Yang. 2026. "Abundance from Abroad: Migrant Income and Long-Run Economic Development." American Economic Review 116 (4): 1540–77.
Publisher
American Economic Association
Publication Date
4-2026
Publication Title
American Economic Review
Department
Economics
Document Type
Article
DOI
https:doi.org/10.1257/aer.20241465
Keywords
International migration, Brain-drain, Emigration, Return, Immigration, Responses, Impacts, Access, Price
Language
English
Format
text
