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This research delves into the dynamics of South-South migration and remittances, highlighting their importance and nuances compared to South-North migration. Preliminary findings suggest socio-economic impacts, policy implications, and determinants unique to South-South migration. While South-South remittances play a significant role, they come with higher costs. The study emphasizes the need for better management, reduced remittance costs, and understanding the impacts on various aspects like income, inequality, health, and migrant rights.
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South-South Migration and RemittancesDilip RathaWorld BankHigh-Level Dialogue on Migration and DevelopmentUnited Nations, New YorkSeptember 14, 2006
Outline of work in progress • Data • Determinants • Socio-economic impacts • Policy implications Definition: South = Developing Countries
Preliminary results • South-South migration is almost as large as South-North migration. South-South remittances appear to be between 10-29% of total flows to the South. • South-South migrants enjoy much lower increases in income (than South-North migrants), are more likely to be irregular. • South-South migration can generate significant welfare gains as these migrants are more likely to be poor, or escaping war or famine. • South-South remittances tend to be more costly than North-South remittances.
Migration to the South is significant Source: United Nations
Global migrant stocks (millions) Source: United Nations
Global migrant stocks (millions) Source: World Bank staff calculations based on migration data from University of Sussex, United Nations, and World Bank
South-South remittances were likely between $19 to $53 billion in 2005 Source: World Bank Staff estimates
South-South remittance costs tend to be higher than North-South costs
Determinants of South-South migration 80% of South-South migration takes place between neighboring countries
Determinants of South-South migration • Almost 80% of identified South-South migration takes place between neighboring countries. • Income differences do not appear to matter as much as in the case of South-North migration • Other factors and motivations: Networks, Seasonality, Ecological disasters, Civil conflict, Transit to North, Petty trade
Socio-Economic Implications • South-South migration results in smaller wage increases for the migrants and natives • Irregular migration is more common in South-South than in South-North migration • Employer exploitation (and trafficking of women) may be common in the South. • Migration flows between developing countries may be less stable due to conflict and economic volatility.
Future work • Improving bilateral migration data • Understanding impacts (on incomes, inequality, health, gender, and migrant rights) • Better management of migration • Reducing remittance costs