Who benefits from return migration to developing countries?

Professor Jackie Wahba publishes an article in the evidence-based policy making section of IZA World of Labor.

Jackline states that despite returnees being a potential resource, not all developing countries benefit from their return.

Return migration can have multiple benefits. It allows migrants who have accumulated savings abroad to ease credit constraints at home and set up a business. Also, emigrants from developing countries who have invested in their human capital may earn higher wages when they return. However, whether the home country benefits from return migrants depends on the migrant's success in accumulating savings and human capital and on the home country's ability to make use of returnees' skills and investment. To benefit from returnees, home countries need policies that encourage returnees' investment and labor market reintegration.

To read the full article, please visit the IZA World of Labor website.

IZA World of Labor provides decision-makers with relevant and succinct information based on sound empirical evidence to help in formulating good policies and best practices. It provides expert know-how in an innovative structure, and a clear and accessible style.

Posted 10/03/2015 11:37