Returns to Low-Skilled International Migration : Evidence from the Bangladesh-Malaysia Migration Lottery Program

Many economists believe that the returns to migration are high. However, credible experimental estimates of the benefits of migration are rare, particularly for low-skilled international migrants and their families. This paper studies a natural exp...

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Main Authors: Mobarak, Mushfiq, Sharif, Iffath, Shrestha, Maheshwor
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2020
Subjects:
Online Access:http://documents.worldbank.org/curated/en/812241582828192310/Returns-to-Low-Skilled-International-Migration-Evidence-from-the-Bangladesh-Malaysia-Migration-Lottery-Program
http://hdl.handle.net/10986/33408
id okr-10986-33408
recordtype oai_dc
spelling okr-10986-334082022-09-20T00:12:49Z Returns to Low-Skilled International Migration : Evidence from the Bangladesh-Malaysia Migration Lottery Program Mobarak, Mushfiq Sharif, Iffath Shrestha, Maheshwor INTERNAL MIGRATION LABOR SKILLS GOVERNMENT INTERMEDIATION LOTTERY WELFARE Many economists believe that the returns to migration are high. However, credible experimental estimates of the benefits of migration are rare, particularly for low-skilled international migrants and their families. This paper studies a natural experiment in Bangladesh, where low-skilled male migrant workers to Malaysia were selected via a large-scale lottery program. This study tracked the households of lottery applicants and surveyed 3,512 lottery winners and losers. Five years after the lottery, 76 percent of the winners had migrated internationally compared with only 19 percent of the lottery losers. Using the lottery outcome as an instrument, the paper finds that the government intermediated migration increased the incomes of migrants by over 200 percent and their household per capita consumption by 22 percent. Furthermore, low-skilled international migration leads to large improvements in a wide array of household socioeconomic outcomes, including female involvement in key household decisions. Such large gains arise, at least in part, due to lower costs of government intermediation. 2020-03-04T14:26:45Z 2020-03-04T14:26:45Z 2020-02 Working Paper http://documents.worldbank.org/curated/en/812241582828192310/Returns-to-Low-Skilled-International-Migration-Evidence-from-the-Bangladesh-Malaysia-Migration-Lottery-Program http://hdl.handle.net/10986/33408 English Policy Research Working Paper;No. 9165 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper South Asia Bangladesh
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic INTERNAL MIGRATION
LABOR SKILLS
GOVERNMENT INTERMEDIATION
LOTTERY
WELFARE
spellingShingle INTERNAL MIGRATION
LABOR SKILLS
GOVERNMENT INTERMEDIATION
LOTTERY
WELFARE
Mobarak, Mushfiq
Sharif, Iffath
Shrestha, Maheshwor
Returns to Low-Skilled International Migration : Evidence from the Bangladesh-Malaysia Migration Lottery Program
geographic_facet South Asia
Bangladesh
relation Policy Research Working Paper;No. 9165
description Many economists believe that the returns to migration are high. However, credible experimental estimates of the benefits of migration are rare, particularly for low-skilled international migrants and their families. This paper studies a natural experiment in Bangladesh, where low-skilled male migrant workers to Malaysia were selected via a large-scale lottery program. This study tracked the households of lottery applicants and surveyed 3,512 lottery winners and losers. Five years after the lottery, 76 percent of the winners had migrated internationally compared with only 19 percent of the lottery losers. Using the lottery outcome as an instrument, the paper finds that the government intermediated migration increased the incomes of migrants by over 200 percent and their household per capita consumption by 22 percent. Furthermore, low-skilled international migration leads to large improvements in a wide array of household socioeconomic outcomes, including female involvement in key household decisions. Such large gains arise, at least in part, due to lower costs of government intermediation.
format Working Paper
author Mobarak, Mushfiq
Sharif, Iffath
Shrestha, Maheshwor
author_facet Mobarak, Mushfiq
Sharif, Iffath
Shrestha, Maheshwor
author_sort Mobarak, Mushfiq
title Returns to Low-Skilled International Migration : Evidence from the Bangladesh-Malaysia Migration Lottery Program
title_short Returns to Low-Skilled International Migration : Evidence from the Bangladesh-Malaysia Migration Lottery Program
title_full Returns to Low-Skilled International Migration : Evidence from the Bangladesh-Malaysia Migration Lottery Program
title_fullStr Returns to Low-Skilled International Migration : Evidence from the Bangladesh-Malaysia Migration Lottery Program
title_full_unstemmed Returns to Low-Skilled International Migration : Evidence from the Bangladesh-Malaysia Migration Lottery Program
title_sort returns to low-skilled international migration : evidence from the bangladesh-malaysia migration lottery program
publisher World Bank, Washington, DC
publishDate 2020
url http://documents.worldbank.org/curated/en/812241582828192310/Returns-to-Low-Skilled-International-Migration-Evidence-from-the-Bangladesh-Malaysia-Migration-Lottery-Program
http://hdl.handle.net/10986/33408
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