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Returns to International Migration: Evidence from a Bangladesh-Malaysia Visa Lottery

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  • Ahmed Mushfiq Mobarak
  • Iffath Sharif
  • Maheshwor Shrestha

Abstract

South Asians traveling to richer Asian nations is the world's largest migration corridor. We track down applicants to a government lottery that randomly allocated visas to Bangladeshis for temporary labor contracts in Malaysia, five years later. Most lottery winners migrate, and migrants' earnings triple. Their remittance raises their family's standard of living in Bangladesh. The migrant's absence pauses marriage and childbirth and shifts decision-making power toward females. Migration removes enterprising individuals, lowering household entrepreneurship, but does not crowd out other family members' labor supply. A deferred migration offer never materialized for a subgroup. Their premigration investments in skills generate no returns in the domestic market.

Suggested Citation

  • Ahmed Mushfiq Mobarak & Iffath Sharif & Maheshwor Shrestha, 2023. "Returns to International Migration: Evidence from a Bangladesh-Malaysia Visa Lottery," American Economic Journal: Applied Economics, American Economic Association, vol. 15(4), pages 353-388, October.
    • Handle: RePEc:aea:aejapp:v:15:y:2023:i:4:p:353-88
    DOI: 10.1257/app.20220258
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    References listed on IDEAS

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    Cited by:

    1. Laurent Bossavie & Daniel Garrote Sánchez & Mattia Makovec, 2024. "The Journey Ahead," World Bank Publications - Books, The World Bank Group, number 42224.
    2. Delius, Antonia & Sterck, Olivier, 2024. "Cash transfers and micro-enterprise performance: Theory and quasi-experimental evidence from Kenya," Journal of Development Economics, Elsevier, vol. 167(C).
    3. Philippe BOCQUIER & Narcisse CHA’NGOM & Frédéric DOQUIER & Joël MACHADO, 2024. "The within-country distribution of brain drain and brain gain effects: A case study on Senegal," JODE - Journal of Demographic Economics, Cambridge University Press, vol. 90(3), pages 384-411, September.
    4. Bossavie, Laurent & Görlach, Joseph-Simon & Özden, Çağlar & Wang, He, 2024. "Capital Markets, Temporary Migration and Entrepreneurship: Evidence from Bangladesh," World Development, Elsevier, vol. 176(C).
    5. Jacopo Bassetto & Teresa Freitas Monteiro, 2024. "Immigrants’ Returns Intentions and Job Search Behavior When the Home Country Is Unsafe," CESifo Working Paper Series 10908, CESifo.

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    More about this item

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J82 - Labor and Demographic Economics - - Labor Standards - - - Labor Force Composition
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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