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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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    Cited by:

    1. Anda David & Mohamed Ali Marouani, 2017. "Migration patterns and labor market outcomes in Tunisia," Working Papers 20170001, Université Paris 1 Panthéon Sorbonne, UMR Développement et Sociétés.
    2. MOUNA BEN OTHMAN & Mohamed Ali MAROUANI, 2016. "Labor Market Effects of Pension Reform :an overlapping genenrations general equilibrium model applied to Tunisia," EcoMod2016 9294, EcoMod.
    3. Jackline Wahba & Ishac Diwan & Michele Tuccio, 2017. "Diaspora Networks as a Bridge between Civilizations," Working Papers 1094, Economic Research Forum, revised 05 Nov 2017.
    4. Zsoka Koczan, 2016. "Remittances during crises," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 24(3), pages 507-533, July.
    5. World Bank, 2014. "Tunisia : Breaking the Barriers to Youth Inclusion
      [Tunisie - Surmonter les obstacles a l'inclusion des jeunes]
      ," World Bank Other Operational Studies 20693, The World Bank.

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