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Migration and employment interactions in a crisis context

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  • Anda M. David
  • Mohamed Ali Marouani

Abstract

type="main" xml:id="ecot12074-abs-0001"> This article analyses how a crisis impacts labour markets in origin countries through migration channels. For this purpose, we develop a novel dynamic general equilibrium model with a focus on the interlinkages between migration, the labour market and education. The main innovation of the paper is the retrospective modelling in general equilibrium of the impact of an economic crisis to isolate the impact of migration on local unemployment. The impact of the crisis on education decision is captured through endogenous returns to education. The simultaneity of the crisis in Tunisia and its partners worsened the labour market situation mainly through the increase in labour supply. The main result of this study is that migration is indeed one of the main determinants of the unemployment increase and that remittances have a higher impact than the variation of emigration flows. The low skilled bear the highest costs in terms of unemployment and wage decline.

Suggested Citation

  • Anda M. David & Mohamed Ali Marouani, 2015. "Migration and employment interactions in a crisis context," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 23(3), pages 597-624, July.
    • Handle: RePEc:bla:etrans:v:23:y:2015:i:3:p:597-624
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    File URL: http://hdl.handle.net/10.1111/ecot.2015.23.issue-3
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    Citations

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    Cited by:

    1. Hajer Habib, 2023. "Remittances and Labor Supply: Evidence from Tunisia," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(2), pages 1870-1899, June.
    2. Anda David & Mohamed Ali Marouani, 2017. "Migration patterns and labor market outcomes in Tunisia," Working Papers DT/2017/03, DIAL (Développement, Institutions et Mondialisation).
    3. Merita Zulfiu Alili & Nick Adnett, 2021. "Return migrants in Albania: The determinants of “entrepreneurial gain”," Review of Development Economics, Wiley Blackwell, vol. 25(3), pages 1761-1777, August.
    4. Sun QIANG & Adnan KHURSHID & Adrian Cantemir CALIN & Khalid KHAN, 2019. "Do Remittances Contribute to the Development of Financial Institutions? New Evidence from the Developing World," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 78-97, June.
    5. Mouna Ben Othman & Mohamed Ali Marouani, 2016. "Labor market effects of Pension Reform : an overlapping generations general equilibrium model applied to Tunisia," Working Papers 20160001, UMR Développement et Sociétés, Université Paris 1 Panthéon-Sorbonne, Institut de Recherche pour le Développement.
    6. Anda DAVID & Björn NILSSON, 2021. "Migration and rural development in NENA countries," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 53, pages 147-165.
    7. Suwastika Naidu & Atishwar Pandaram & Anand Chand, 2017. "A Johansen Cointegration Test for the Relationship between Remittances and Economic Growth of Japan," Modern Applied Science, Canadian Center of Science and Education, vol. 11(10), pages 137-137, October.
    8. Hossain, Sharif M. & Hosoe, Nobuhiro, 2020. "Welfare and equity impacts of cross-border factor mobility in Bangladesh: A general equilibrium analysis," Economic Modelling, Elsevier, vol. 87(C), pages 172-184.
    9. Jackline Wahba & Ishac Diwan & Michele Tuccio, 2017. "Diaspora Networks as a Bridge between Civilizations," Working Papers 1094, Economic Research Forum, revised 05 Nov 2017.
    10. Zsoka Koczan, 2016. "Remittances during crises," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 24(3), pages 507-533, July.
    11. World Bank, 2014. "Tunisia : Breaking the Barriers to Youth Inclusion [Tunisie - Surmonter les obstacles a l'inclusion des jeunes]," World Bank Publications - Reports 20693, The World Bank Group.

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