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Migrating out of a crowded labor market: evidence from Egypt

Author

Listed:
  • Anda David

    () (PSL Research university
    Agence Française de Développement)

  • Joachim Jarreau

    () (PSL Research university)

Abstract

Abstract We analyze the determinants of emigration at the individual and household level, using three waves of the Egyptian labor market panel survey (ELMPS) covering the 1998–2012 period. Exploiting the panel structure of the data allows us to reduce the risk of reverse causality and to estimate the effect of migrant networks more accurately than in studies based on cross-sectional data. We confirm, in the Egyptian context, the non-linear relationship between household resources and migration propensity, due to migration costs; a larger network of past emigrants from the same community mitigates this selection on wealth, increasing the propensity to migrate among poorer households. We also show that unemployment and informal employment act as incentives to emigrate, suggesting that the scarcity of quality jobs, in particular on the skilled labor market, is one important driver of emigration flows in Egypt. However, these incentives turn into effective migration only in communities with a sufficiently large network of past migrants.

Suggested Citation

  • Anda David & Joachim Jarreau, 2017. "Migrating out of a crowded labor market: evidence from Egypt," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 7(1), pages 1-28, December.
  • Handle: RePEc:spr:izamig:v:7:y:2017:i:1:d:10.1186_s40176-017-0092-4
    DOI: 10.1186/s40176-017-0092-4
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    International migration; Networks; Migrant selection; Formality; Egypt;

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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