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This study uses a panel of some 8,000 households common to the 2007 and 2008 Annual Poverty Indicators Surveys to examine the economic impact of overseas migration on Philippine households. It finds overseas migration to be an important driving factor for household social mobility in the Philippines. Using panel regression analysis, the study shows households that are able to send members overseas experience a windfall in income transfers, but they also incur losses in domestic wages. This moves them up the income ladder, supports their increased consumption – including spending for education, medical care, real property and equipment, food, clothing and recreation – reduces their poverty, and allows them to increase inter-household transfers.

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