Does Migration Really Help to Narrow the Income Gap, Especially after the Returnee Comes Home?
Source: BBC
Migration is recognised as a way to escape from poverty through its benefits in the form of earning higher income, sending money home (which can be used to pay household expenses), accumulating savings (which can be used to start a business once they return home), and gaining experience and widening network.
However, does migration really help to narrow the income gap, especially after the returnee comes home?
Our empirical findings attempt to answer that question.
Our paper, conducted under collaborative work between Saga University, Japan and Universitas Negeri Malang, Indonesia, investigates the impact of international labour migration on poverty vulnerability and gender inequality in Indonesia.
Using a microdata set of the Indonesian National Labour Force Survey (Sakernas) 2021, we found that migration does not significantly reduce poverty vulnerability among returnees. Moreover, gender disparities persist, shaped by both endowment (differences in characteristics) and coefficient (returns to those characteristics) effects.
At lower poverty thresholds, endowment differences slightly reduce poverty risk, but at higher thresholds, unequal returns to these characteristics reinforce gender-based vulnerability.
This implies that international migration does not significantly reduce poverty vulnerability among returnee households in Indonesia, indicating that migration alone is not a sufficient pathway for long-term economic improvement.
The benefit of international migration is likely felt during the migration period, for example, in the form of sending children to higher education, paying debts, or paying for expenses. In contrast, when the migrants return home, they are in a challenging situation where the labour market cannot fully accept and utilise their skills and network gained from overseas, as shown by their inability to earn significantly more than non-migrant workers.
The findings of this study were presented in an international guest lecture that was held on Thursday, 27 November 2025 in Malang (TS).


