More than 200 million people reside in a country that is not their birthplace. This “diaspora nation” of migrants outranks all but four of the world’s countries in population. These migrants make an immense economic contribution both to their host country and to their home country, primarily through transfers of money they earn back to their home country, which are known as “remittances.” About 82 percent of migrants originate in developing countries, and their remittances, which amounted to an estimated $305 billion in 2008, represent an essential source of foreign exchange for these countries, as well as a major instrument in the fight against poverty.
- Migrants are economic assets for both their host and home countries, but the global financial crisis has disproportionately affected migrants, who are both economically and politically vulnerable.
- Migration responds to labor demand in the host country—it increases during economic booms and decreases during busts, thus minimizing competition with native-born workers.
- Policy makers in host countries should resist political pressures calling for measures against migrants and make sure that migrants’ contribution to economic welfare is more broadly understood.
- Temporary migration programs and collaboration with migrant-sending countries can help maximize the economic benefits of migration, including in times of crisis.
