The Effects of Labor Migration and OFW Remittances on the Level of Poverty in the Philippines

Abstract

Global labor mobility and Overseas Filipino workers have been a topic of interest due to its rapid growth and its apparent links with development goals. Among the 197 countries in the world, the Philippines has one of the highest rates of migration. In this paper, the researchers have examined the statistical relationship between migration and poverty through a study, using panel data from the years 2006, 2008, 2012, 2015, and 2018 in the Philippines. Specifically, the paper examined the degree of impact of migration on poverty using the GINI coefficient and GRDP as determinants for poverty, whilst Remittances is the constant variable used. The study aimed to determine whether remittances reduce poverty as Overseas Filipino Workers continue to increase yearly. The end results showed that there is a relationship amongst poverty, international labor migration, and remittances via the fixed panel data done but show a low significance level among the said variables. Thus, there is a relationship within the variables but a low significance level to the poverty in the Philippines.