I. Introduction 6

II. Traditional Emigration Pattern in PICs 7

III. Recent Emigration Trends and the Expansion of the Labor Mobility Arrangement 10

IV. Closer Look at LMA and Human Capital 14

V. Growth Implications: Model and Simulation 19

  A. Model 19

  B. Long-Term Growth Implications: Simulation Results 19

VI. Conclusions 22

Appendix I. More Stylized Facts of LMA 24

Appendix II. Structural model and Calibration 30

  A. Model setup 30

  B. Closed‑Economy Benchmark 30

  C. Open Economy 31

  D. Results 32

References 33