Abstract: Internal migration has been recognized to play crucial role in overall welfare, particularly poverty reduction. Among other things, the purpose of this paper is to find out which variables accounts for poverty reduction efforts in Ghana especially those that have implications for rural livelihood diversification. The study used data obtained from primary source in five key settlements of administrative and commercial importance in Ghana and household members of out-migrants from the Upper East Region. A structured questionnaire covering pertinent issues related to migration and household poverty was administered to them through interview. The sample size was 345 and snowball approach was adopted to reach the target group in the selected metropolises. The study also employed factor analysis to determine poverty reduction variables relating to internal migration and its implications for socio-economic development. It emerged that institutional, economic and socio-cultural factors are key in determining the ability of migration to contribute towards poverty reduction. It is concluded that internal migration for livelihood purposes is important as it enables households to improve their living conditions in a sustained manner.