Title page 1

Contents 3

Acknowledgments 7

Abbreviations 9

Overview 10

Chapter 1. How is EAP migration unique compared to other regions? 17

Net immigration in the EAP region is growing rapidly 17

Migration and migrants are increasingly diverse 20

Mobility of high-skilled workers within the region has become less dynamic 21

Irregular migration persists 23

Spotlight 1.1. Internal Migration within China and Return of the Chinese Diaspora to China 25

Chapter 2. Demographic and skills differences drive migration in EAP 29

Limited job availability at home pushes people to move abroad 29

Wage premiums incentivize workers to migrate 31

The cost of migration is a formidable barrier for the poor 32

Workers go where there are good job opportunities 32

Aging populations and declining birth rates are fueling migration within the region 34

Technological change, migration policies, and other factors influence migration 35

Spotlight 2.1. Climate Change, Natural Disasters, and Migration in the East Asia and Pacific Region 36

Spotlight 2.2. Conflict-driven Migration in the East Asia and Pacific Region-The Case of Myanmar Refugees in Malaysia 38

Chapter 3. How does migration influence human capital development and reallocation? 40

Effects in origin countries 40

The impacts of migration on human capital: brain drain and brain gain 40

Remittances contribute to human capital development 43

Remittances support macroeconomic stability 44

Much can be gained by reducing remittance costs 46

The impacts of migration and remittances on employment are varied 46

The impacts of migration and remittances on wages are complex 47

Effects in destination countries 48

Immigration typically expands the stock of skills in destination countries 49

Immigration can fill labor shortages in the short term 50

The net effects of migration on employment and wages in destination countries tend to be positive, but migration does not benefit all 50

Migration increases female labor force participation 52

Mismatches between qualifications and jobs reduce the benefits of migration 53

Chapter 4. How do migration policies expand gains from migration? 55

Migration policies reflect diverse and sometimes conflicting interests and objectives 55

How do migration policies expand net gains along the migration cycle? 57

Pre-migration: Skills development for better employment 57

Entry: Destination countries' unilateral formulation on how many can enter, guided by labor needs 57

Protecting migrants during the migration journey 61

Integration in host societies: Migration policy as a long-term development strategy 62

Return and reintegration in origin countries: Testing various policies to improve utilization of human capital 63

Spotlight 4.1. Turning Brain Drain into Brain Gain-Global Skill Partnerships 65

Chapter 5. Policy recommendations 68

Areas for bilateral and regional collaboration and international organizations 75

References 77

Appendix 1. Categorizations of countries in EAP 94

Appendix 2. Migration systems in EAP 95

Appendix 3. The EAP Migration Policy Database 104

Appendix 4. Policy scenarios using the adapted Global Integrated Monetary and Fiscal Model 108

Appendix 5. Major origin and destination economies in EAP 118

Appendix 6. Country pages 119

Tables 6

Table 5.1. Policy recommendations to enhance net gains from migration 70

Figures 5

Figure 0.1. Migration within the EAP region has expanded, except in some corridors 11

Figure 0.2. Low- and high-skilled migration in EAP has increased 11

Figure 0.3. Wage differences for the same occupation within the region are striking 11

Figure 0.4. Many EAP countries are undergoing a transition from aging to aged and super-aged status 12

Figure 0.5. The restrictiveness of migration policies varies by skill level 14

Figure 1.1. Major destination countries are also those that are aging 18

Figure 1.2. Major origin countries are relatively young 18

Figure 1.3. Countries with slow population growth are also more likely to have higher shares of immigrants 18

Figure 1.4. Migration has resumed following mobility restrictions imposed during the COVID-19 pandemic 18

Figure 1.5. Net immigration into EAP has been increasing over time 18

Figure 1.6. Most migration in EAP occurs within the region 19

Figure 1.7. Female migration has been increasing in EAP 21

Figure 1.8. Migrants are typically younger in low- and middle-income EAP countries 21

Figure 1.9. Both low- and high-skilled migration in EAP have increased 22

Figure 1.10. Low-skilled migration continues to make up most of the migration 22

Figure 1.11. EAP high-skilled workers go to non-EAP countries, while low-skilled workers move within EAP 22

Figure 1.12. China has been the main contributor to the growth of student migrants from EAP 23

Figure 1.13. More than half of all student migrants from EAP are from China 23

Figure 1.14. Changes in public perceptions on "Not wanting immigrants as neighbors" by age group 24

Figure 2.1. Lower-income EAP countries have higher unemployment and much higher rates of inactive youth 30

Figure 2.2. Migrating from low- to higher-income countries can increase wages significantly 31

Figure 2.3. Migration costs vary considerably across different modes of recruitment and corridors (in months of earnings in destination) 32

Figure 2.4. Labor Shortage in Australia 33

Figure 2.5. Thai firms' demand for foreign workers became acute as they recovered from the COVID-19 pandemic 33

Figure 2.6. Top 5 skills sought after by online jobs 35

Figure 3.1. Brain drain or brain gain? 42

Figure 3.2. Emigration from and remittance inflows to EAP by destination 44

Figure 3.3. Top 15 remittance-receiving countries in EAP 44

Figure 3.4. Emigration from and remittance inflows to EAP by destination 45

Figure 3.5. Remittance costs vary widely across EAP countries (Q3 in 2023) 46

Figure 3.6. The probability of becoming an employer rises as remittances rise (in migrant households in the Philippines) (y=percent, x=monthly remittances in US$) 47

Figure 3.7. Effects of immigration on a rapidly aging economy: Various scenarios 48

Figure 3.8. The migrant share of the tertiary-educated population/workforce varies considerably in East Asia and Pacific 49

Figure 3.9. Singapore's active management of flows of foreign workers has allowed it to expand the workforce quickly during economic booms 50

Figure 3.10. Change in the number of Malaysians employed due to employment of one additional migrant worker 51

Figure 3.11. Effect on wages of a 1% increase in labor force equivalent increase in immigrants 51

Figure 3.12. Share of migrants and female labor force participation in East Asia and Pacific 52

Figure 3.13. The overqualification rate among immigrants differs by origin countries in East Asia and Pacific 53

Figure 4.1. The number of immigrants into Japan has increased across all skill levels 57

Figure 4.2. The quotas for immigrants into Korea have increased 57

Figure 4.3. The Philippines provides comprehensive and targeted reintegration service for returnees 63

Boxes 3

Box 2.1. Workers from Pacific Island Countries find formal employment opportunities in Australia and New Zealand 30

Box 3.1. Illustration of labor market effects from migration and resulting remittances 41

Box 3.2. The benefits of circular migration on human capital 43

Box 4.1. Bilateral labor arrangements are a key tool to shape migration governance 58

Box 4.2. Restrictiveness of high- and low-skilled migration schemes 59

Box 4.3. Protecting migrants during recruitment and in the destination country 61

Box 5.1. Migration, combined with other policies, is the best remedy to boost economic growth in an aging society like Japan 68

Box 5.2. International good practices governing migration systems 71

Maps 6

Map 2.1. Aging population and working-age population needs 34

Spotlight Tables 6

Table S4.1.1. Various types of Global Skill Partnerships have been adopted in East Asia and Pacific 67

Spotlight Figures 5

Figure S1.1.1. The number of rural-urban migrant workers in China expanded remarkably until the early 2000s 25

Figure S1.1.2. Annual net emigration flows from China, 1978-2024 27

Figure S2.1.1. Some EAP countries are highly vulnerable to natural disasters 36

Figure S2.1.2. Climate change affects migration through income and habitability 37

Figure S2.2.1. Total refugees and asylum seekers from Myanmar and other countries in select EAP host countries, 2023 38

Figure S2.2.2. Refugees from Myanmar have very low labor force participation rates in Malaysia, especially women (percent) 38

Figure S2.2.3. Most refugees from Myanmar work in low-level jobs 39

Box Figures 6

Figure B3.1.1. The complex impacts of migration on the labor force, remittances, employment, and wages 41

Figure B3.1.2. The effects of migration and remittances on human capital and competitiveness 41

Figure B4.2.1. High-skilled migration schemes in EAP are typically subject to less restrictive measures 60

Figure B5.1.1. Migration is the most effective policy to deal with aging in Japan, but a combination of policies, including migration, work even better 69

Appendix Tables 6

Table A-1. Destination, origin, and Pacific Island economies 94

Table A-2. Aging and labor abundant economies 94

Table A-3. Low-skilled labor migration systems 95

Table A-4. High-skilled labor migration systems 98

Table A-5. Migration systems governing out-migration in origin countries 100

Table A-6. The types of migrants, objectives, and types of migration used to classify migration schemes 104

Table A-7. Dimensions of migration policy included in the database 104

Table A-8. List of economies and migration schemes included in the database 105

Table A-9. Major EAP origin countries by EAP destination economies (Share in the total immigrants, %) 118

Table A-10. Major destinations by EAP origin countries (Share of emigration in destination, %) 118

Appendix Figures 6

Figure D.1. Better use of resources available 110

Figure D.2. Better use of resources available 111

Figure D.3. Population projections conditional on net migration 112

Figure D.4. Migration scenarios and the effect of remittances on the origin country (the Philippines) 113

Figure D.5. Migration scenarios and the effect of Japan retirees temporarily moving to the Philippines 114

Figure D.6. Japan's high rates of return on foreign direct investment (across industries) 115

Figure D.7. Illustrative FDI scenario 115

Figure D.8. Illustrative technology scenario 117