Abundance from Abroad: Migrant Income and Long-Run Economic Development
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.
-
-
Copy CitationGaurav Khanna, Emir Murathanoglu, Caroline B. Theoharides, and Dean Yang, "Abundance from Abroad: Migrant Income and Long-Run Economic Development," NBER Working Paper 29862 (2022), https://doi.org/10.3386/w29862.Download Citation
-
Published Versions
Gaurav Khanna & Emir Murathanoglu & Caroline Theoharides & Dean Yang, 2026. "Abundance from Abroad: Migrant Income and Long-Run Economic Development," American Economic Review, American Economic Association, vol. 116(4), pages 1540-1577, April, DOI: 10.1257/aer.20241465. citation courtesy of 
Gaurav Khanna & Emir Murathanoglu & Caroline Theoharides & Dean Yang, 2026. "Abundance from Abroad: Migrant Income and Long-Run Economic Development," American Economic Review, vol 116(4), pages 1540-1577.
More from the NBER
In addition to working papers, the NBER disseminates affiliates’ latest findings through a range of free periodicals—the NBER Reporter, the NBER Digest, the Bulletin on Health, the Bulletin on the Economics of Alzheimer's, and the Bulletin on Entrepreneurship—as well as research spotlights, lectures, and panel videos.
