The International Organisation for Migration (IOM) have just released the data from a survey of over 10,000 migrant households in Bangladesh. Michael Clemens does a quick calculation of the rate of return on investment for these migrants – 117% per year for an upfront investment of $3150. “That’s a stunningly profitable investment,” given that the returns to microfinance in Bangladesh might be 11% at best.
Meanwhile the Institute for Public Policy Research (IPPR) and the Global Development Network (GDN) have released a new study based on 10,000 households across six countries: Colombia, Georgia, Ghana, Jamaica, Macedonia and Vietnam. Their findings on the economic impacts of migration are that:
- migration increases migrants earnings
- it also increases the incomes of the households they come from
- receiving remittances increases business ownership
- receiving remittances does not impact labour market participation or unemployment
- receiving remittances increases savings