Abundance from Abroad: Migrant Income and Long-Run Economic Development

2026/03/31 by Gaurav Khanna, Emir Murathanoglu, Caroline Theoharides +1 · 1 voice
Social Sciences · Economics, Econometrics and Finance · #Migration and Labor Dynamics #Regional Economics and Spatial Analysis #Global trade and economics

paper · doi:10.1257/aer.20241465

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. (JEL F22, F31, G01, J24, J82, O15, O16)

Citations

• Brain drain or brain gain? Effects of high-skilled international emigration on origin countries

Discussions

• "Abundance from Abroad: Migrant Income and Long-Run Economic Development" American Economic Review, April 2026 With @econgaurav.bsky.social (Gaurav Khanna), Emir Murathanoglu, and Caroline Theoharide [bsky, 17 points, 0 comments]

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