IDEAS home Printed from https://ideas.repec.org/p/uds/wpaper/20150007.html
   My bibliography  Save this paper

Migration and Employment Interactions in a Crisis Context: the case of Tunisia

Author

Listed:
  • Anda David
  • Mohamed Ali Marouani

Abstract

This article analyses how a crisis impacts labor markets in origin countries through migration channels. For this purpose, we develop a novel dynamic general equilibrium model with a focus on the interlinkages be- tween migration, the labor market and education. The main innovation of the paper is the retrospective modeling 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 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. _________________________________ Cet article s’intéresse à la manière dont une crise affecte le marché du travail des pays d’origine, à travers la migration. A cet effet, nous développons un modèle d’équilibre général dynamique mettant l’accent sur les interactions entre migration, marché du travail et éducation. La principale innovation de l’article est la modélisation rétrospective en équilibre général de l’impact d’une crise économique, en isolant l’effet de la migration sur le chômage local. L’impact de la crise sur l’accumulation de capital humain est capté via l’endogénéisation des rendements de l’éducation. La simultanéité de la crise en Tunisie et dans les pays partenaires a aggravé la situation sur marché du travail tunisien, principalement à travers l’augmentation de l’offre de travail. Le principal résultat est que la migration est en effet l’un des principaux déterminants de l’augmentation du chômage et que les transferts de fonds ont un impact plus important que la variation des flux d’émigrants. En outre, les travaille
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Anda David & Mohamed Ali Marouani, 2015. "Migration and Employment Interactions in a Crisis Context: the case of Tunisia," Working Papers 20150007, UMR Développement et Sociétés, Université Paris 1 Panthéon-Sorbonne, Institut de Recherche pour le Développement.
  • Handle: RePEc:uds:wpaper:20150007
    as

    Download full text from publisher

    File URL: https://umr-developpement-societes.univ-paris1.fr/fileadmin/UMRDS/Working_Papers/WP7.15_-_Migration_and_Employment_Interactions_in_a_Crisis_Context.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Bussolo, Maurizio & Medvedev, Denis, 2008. "Do Remittances Have a Flip Side? A General Equilibrium Analysis of Remittances, Labor Supply Responses and Policy Options for Jamaica," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 23, pages 734-764.
    2. Karam Fida, 2010. "When Migrant Remittances Are Not Everlasting: How Can Morocco Make Up?," Review of Middle East Economics and Finance, De Gruyter, vol. 6(1), pages 1-38, July.
    3. Abdurrahman Aydemir & George J. Borjas, 2007. "Cross-Country Variation in the Impact of International Migration: Canada, Mexico, and the United States," Journal of the European Economic Association, MIT Press, vol. 5(4), pages 663-708, June.
    4. Gordon H. Hanson, 2009. "The Economic Consequences of the International Migration of Labor," Annual Review of Economics, Annual Reviews, vol. 1(1), pages 179-208, May.
    5. Fallon, P R & Layard, P R G, 1975. "Capital-Skill Complementarity, Income Distribution, and Output Accounting," Journal of Political Economy, University of Chicago Press, vol. 83(2), pages 279-301, April.
    6. Dean Yang, 2008. "International Migration, Remittances and Household Investment: Evidence from Philippine Migrants’ Exchange Rate Shocks," Economic Journal, Royal Economic Society, vol. 118(528), pages 591-630, April.
    7. Fredriksson, Peter, 1997. " Economic Incentives and the Demand for Higher Education," Scandinavian Journal of Economics, Wiley Blackwell, vol. 99(1), pages 129-142, March.
    8. J. Bhagwati & Hamada, 1973. "The Brain Drain, International Integration of K. Markets for Professionals and Unemployment: A Theoretical Analysis," Working papers 102, Massachusetts Institute of Technology (MIT), Department of Economics.
    9. Rapoport, Hillel & Docquier, Frederic, 2006. "The Economics of Migrants' Remittances," Handbook on the Economics of Giving, Reciprocity and Altruism, in: S. Kolm & Jean Mercier Ythier (ed.), Handbook of the Economics of Giving, Altruism and Reciprocity, edition 1, volume 1, chapter 17, pages 1135-1198, Elsevier.
    10. Jesus Alquezar Sabadie & Johanna Avato & Ummuhan Bardak & Francesco Panzica & Natalia Popova, 2010. "Migration and Skills : The Experience of Migrant Workers from Albania, Egypt, Moldova, and Tunisia," World Bank Publications - Books, The World Bank Group, number 2421, December.
    11. McKenzie, David & Sasin, Marcin J., 2007. "Migration, remittances, poverty, and human capital : conceptual and empirical challenges," Policy Research Working Paper Series 4272, The World Bank.
    12. Caglar Ozden & Christopher R. Parsons & Maurice Schiff & Terrie L. Walmsley, 2011. "Where on Earth is Everybody? The Evolution of Global Bilateral Migration 1960-2000," The World Bank Economic Review, World Bank, vol. 25(1), pages 12-56, May.
    13. Mishra, Prachi, 2007. "Emigration and wages in source countries: Evidence from Mexico," Journal of Development Economics, Elsevier, vol. 82(1), pages 180-199, January.
    14. Peter Fredriksson, 1997. "Economic Incentives and the Demand for Higher Education," Scandinavian Journal of Economics, Wiley Blackwell, vol. 99(1), pages 129-142, March.
    15. Timo Baas & Silvia Maja Melzer, 2012. "The Macroeconomic Impact of Remittances: A sending country perspective," Norface Discussion Paper Series 2012021, Norface Research Programme on Migration, Department of Economics, University College London.
    16. Jean-Christophe Dumont & Gilles Spielvogel & Sarah Widmaier, 2010. "International Migrants in Developed, Emerging and Developing Countries: An Extended Profile," OECD Social, Employment and Migration Working Papers 114, OECD Publishing.
    17. George J. Borjas, 2021. "The Labor Demand Curve Is Downward Sloping: Reexamining The Impact Of Immigration On The Labor Market," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 9, pages 235-274, World Scientific Publishing Co. Pte. Ltd..
    18. repec:dau:papers:123456789/4310 is not listed on IDEAS
    19. Dessus, Sebastien & Nahas, Charbel, 2008. "Migration and Education Decisions in a Dynamic General Equilibrium Framework," Policy Research Working Paper Series 4775, The World Bank.
    20. Mohamed Ali Marouani, 2010. "More jobs for university graduates: some policy options for Tunisia," Applied Economics Letters, Taylor & Francis Journals, vol. 17(10), pages 933-937.
    21. Funkhouser, Edward, 1995. "Remittances from International Migration: A Comparison of El Salvador and Nicaragua," The Review of Economics and Statistics, MIT Press, vol. 77(1), pages 137-146, February.
    22. Barzel, Yoram & McDonald, Richard J, 1973. "Assets, Subsistence, and The Supply Curve of Labor," American Economic Review, American Economic Association, vol. 63(4), pages 621-633, September.
    23. Amelie F. Constant & Klaus F. Zimmermann (ed.), 2013. "International Handbook on the Economics of Migration," Books, Edward Elgar Publishing, number 4026.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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 1166, Economic Research Forum, revised 12 2017.
    3. 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.
    4. 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.
    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. 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.
    7. Jackline Wahba & Ishac Diwan & Michele Tuccio, 2017. "Diaspora Networks as a Bridge between Civilizations," Working Papers 1094, Economic Research Forum, revised 05 Nov 2017.
    8. Zsoka Koczan, 2016. "Remittances during crises," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 24(3), pages 507-533, July.
    9. 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.
    10. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:dau:papers:123456789/14850 is not listed on IDEAS
    2. repec:dau:papers:123456789/14987 is not listed on IDEAS
    3. Anda David & Mohamed Ali Marouani, 2013. "The Impact of Labor Mobility on Unemployment: A Comparison between Jordan and Tunisia," Working Papers 823, Economic Research Forum, revised Dec 2013.
    4. Christian Dustmann & Joseph-Simon Görlach, 2016. "The Economics of Temporary Migrations," Journal of Economic Literature, American Economic Association, vol. 54(1), pages 98-136, March.
    5. Anna De Paoli & Mariapia Mendola, 2014. "International Labor Mobility and Child Work in Developing Countries," Development Working Papers 365, Centro Studi Luca d'Agliano, University of Milano, revised 07 Apr 2014.
    6. De Paoli, Anna & Mendola, Mariapia, 2014. "International Labor Mobility and Child Work in Developing Countries," IZA Discussion Papers 8066, Institute of Labor Economics (IZA).
    7. Anna De Paoli & Mariapia Mendola, 2017. "International Migration and Child labour in Developing Countries," The World Economy, Wiley Blackwell, vol. 40(4), pages 678-702, April.
    8. Calogero Carletto & Jennica Larrison & Çaglar Özden, 2014. "Informing migration policies: a data primer," Chapters, in: Robert E.B. Lucas (ed.), International Handbook on Migration and Economic Development, chapter 2, pages 9-41, Edward Elgar Publishing.
    9. Gharad Bryan & Shyamal Chowdhury & A. Mushfiq Mobarak, 2011. "Seasonal Migration and Risk Aversion," Working Papers id:4650, eSocialSciences.
    10. Kahanec, Martin, 2012. "Skilled Labor Flows: Lessons from the European Union," IZA Research Reports 49, Institute of Labor Economics (IZA).
    11. Mattia Makovec & Ririn S Purnamasari & Matteo Sandi & Astrid R Savitri, 2018. "Intended versus unintended consequences of migration restriction policies: evidence from a natural experiment in Indonesia," Journal of Economic Geography, Oxford University Press, vol. 18(4), pages 915-950.
    12. Gordon Hanson, 2010. "The Governance of Migration Policy," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 11(2), pages 185-207.
    13. Jesus Cañas & Roberto Coronado & Pia M. Orrenius & Madeline Zavodny, 2010. "Do remittances boost economic development? Evidence from Mexican states," Working Papers 1007, Federal Reserve Bank of Dallas.
    14. Martin Kahanec & Mariola Pytliková, 2017. "The economic impact of east–west migration on the European Union," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 44(3), pages 407-434, August.
    15. Dustmann, Christian & Glitz, Albrecht, 2011. "Migration and Education," Handbook of the Economics of Education, in: Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), Handbook of the Economics of Education, edition 1, volume 4, chapter 0, pages 327-439, Elsevier.
    16. Anda David & Mohamed Ali Marouani, 2013. "International Labor Mobility and Employment Interactions in Tunisia," Working Papers 804, Economic Research Forum, revised Nov 2013.
    17. Hanson, Gordon H., 2010. "International Migration and the Developing World," Handbook of Development Economics, in: Dani Rodrik & Mark Rosenzweig (ed.), Handbook of Development Economics, edition 1, volume 5, chapter 0, pages 4363-4414, Elsevier.
    18. Noel Gaston & Douglas R. Nelson, 2013. "Bridging Trade Theory And Labour Econometrics: The Effects Of International Migration," Journal of Economic Surveys, Wiley Blackwell, vol. 27(1), pages 98-139, February.
    19. Hatton, Timothy J., 2014. "The economics of international migration: A short history of the debate," Labour Economics, Elsevier, vol. 30(C), pages 43-50.
    20. Saumik Paul & Yoko Oishi, 2018. "A Primer on the Drivers of Labor Income Share," Working Papers id:12948, eSocialSciences.
    21. Costanza Biavaschi & Giovanni Facchini & Anna Maria Mayda & Mariapia Mendola, 2018. "South–South migration and the labor market: evidence from South Africa," Journal of Economic Geography, Oxford University Press, vol. 18(4), pages 823-853.
    22. Bertoli, Simone & Fernández-Huertas Moraga, Jesús, 2013. "Multilateral resistance to migration," Journal of Development Economics, Elsevier, vol. 102(C), pages 79-100.

    More about this item

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:uds:wpaper:20150007. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Cyrine Hannafi (email available below). General contact details of provider: https://edirc.repec.org/data/udsp1fr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.