Internal migration is a common and sizeable phenomenon in many developing countries. An estimated
740 million people live outside their region of birth (Bell and Muhidin, 2009). Differences in regional
economic performance induce people to leave poorer areas and move to those where more and better
opportunities are located. In Ghana, around 35 percent of people in the population Census of 2010
had moved from their place of birth to another location within the country (Ghana Statistical Service,
2013). Many people move from poorer to richer regions, some move with the whole household, others
send a member of the household (Litchfield and Waddington, 2003; Molini et al., 2016).
Internal migration plays an important role in poverty reduction and economic development at the individual,
household and macroeconomic level. On the one hand, it contributes to structural change in
the country when rural workers move into non-agricultural work in urban areas (Harris and Todaro,
1970). On the other hand, migration of a household member can insure the sending household against
income shocks in the origin. Such insurance can prevent households from falling into poverty. Moreover,
the income earned by the migrant member can raise consumption levels at home or even pay
for investments in profitable technologies (Stark and Bloom, 1985). Additionally, geographic mobility
offers young people to advance their education and gain new skills if their origins do not provide
these opportunities.