2026/01/01 by Gaurav Khanna, Emir Murathanoglu, Caroline Theoharides +1 · 1 voice
paper · doi:10.3886/e239001v1
openalex publication_date 2026/01/01 · openalex created_date 2026/03/04 · openalex updated_date 2026/07/01
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, 73.6% 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 19.6% of long-run income gains stem from educational investments. International migration fosters broad economic development in origin communities.