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Economic Effects of Migration on the Home Country: A Simple Life‐cycle Model

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It is impossible to generalise about the effects of migration on sending countries because the effects of emigration on their economies depend very much on their position within the migration cycle. Most emigration countries will pass through some version of the stages of this cycle. Emigration can affect growth and poverty reduction through three channels: changes in the labour supply, changes in productivity, and through migrants' remittances. The net benefit (that is, benefits minus costs) of emigration is the sum of these three effects, and the relative importance of each channel varies over the life of the migration cycle. The five stages of the migration cycle are exit, adjustment, consolidation, networking and return. Some stages may be skipped or accelerated and return may coincide with immigration from other countries.
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Document Type: Review Article

Publication date: 2007-11-01

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