International migration is one of the most powerful tools available for poverty reduction and economic development. This review synthesises rigorous quantitative evidence on the impact of migration on origin countries, as well as the impact of development policies related to international migration.

The Scale of Impact

When workers from developing countries migrate to high-income nations, they commonly experience wage gains of 300–400%, and sometimes even higher. These gains – established by studying randomised visa lotteries and quasi-experimental work – dwarf the impacts of virtually any other development intervention. These wage gains yield benefits that extend far beyond the migrants themselves. In 2023, remittances sent home to developing countries by international migrants amounted to US$656 billion, more than double official development assistance. These flows finance investments in education, health, and entrepreneurship in origin countries. International migrants also provide crucial insurance: when households in origin countries experience negative shocks, remittances from overseas make up for substantial shares of income declines.

International migration also stimulates economic development in migrants’ origin areas over the long term. When Philippine provinces experienced positive shocks to their overseas migrants’ incomes, these effects compounded over decades through increases in educational investments as well as in higher-skilled, higher-wage migration. Remarkably, most of the long-run income gains came from increases in domestic income rather than migrant income itself.

Brain Gain, Not Just Brain Drain

Contrary to concerns about ‘brain drain’, rigorous evidence shows that skilled international migration opportunities can actually increase the total stock of skilled workers remaining behind in origin countries. When the US expanded nursing visas, Philippine nursing enrolment surged: for each nurse who migrated, approximately nine new nurses were licensed domestically. Migration prospects stimulate educational investment, but not everyone who acquires skills eventually migrates, leaving origin countries with net gains in human capital. Researchers have found similar effects across multiple contexts worldwide.

Key Policy Recommendations

1. Expand legal migration pathways. Temporary guest worker programmes and innovative mechanisms like the Global Skill Partnerships – where destination countries help finance training in origin countries for occupations with documented skill shortages – can expand migration opportunities while addressing concerns about job displacement. Reducing financial barriers and intermediation fees can help expand access to migration for poorer populations.
2. Protect migrant workers. Better-treated migrants are likely to earn more and send more remittances home. Provision of information on worker rights, regularisation of migration status, and labour regulations such as worker safety laws can all help protect migrant workers.
3. Facilitate productive use of remittances. Interventions giving migrants greater control over remittance uses – through directed giving mechanisms, savings programmes, or improved communication with families – can channel migrant resources to savings and investments. Financial education has greater impacts when migrants and family members are trained together.
4. Design information interventions carefully. Prioritise information addressing genuine knowledge gaps – such as on worker rights – over general migration information or risk warnings, which frequently fail to change actual behaviour.

International Migration: Presentation of key takeaways

At our launch event, Dean Yang outlined everything you need to know about international migration and development.