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Short and Long-Term Impacts of Emigration on Origin Households: The Case of Egypt

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  • Anda David

    () (Université Paris-Dauphine)

  • Joachim Jarreau

Abstract

This paper studies the impacts of emigration on income inequality and wealth in Egypt. Using three waves of a longitudinal survey covering the 1998-2012 period, we first study the impact of remittances on incomes in origin households, using a selection-correction model to estimate counterfactual home earnings of emigrants. In this exercise, we find a limited, inequalityincreasing impact of remittances. We then turn to estimating the impact of migration episodes on households’ permanent income in the longer term, using the panel structure of the data. Results show that migrant departures significantly increase standards of living in origin households, suggesting that returns to migration through human capital accumulation, savings and investment outweigh those from remittances only. Benefits from migration appear to be larger and more tilted toward poor households in rural areas.

Suggested Citation

  • Anda David & Joachim Jarreau, 2015. "Short and Long-Term Impacts of Emigration on Origin Households: The Case of Egypt," Working Papers 977, Economic Research Forum, revised Dec 2015.
  • Handle: RePEc:erg:wpaper:977
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    2. Barry McCormick & Jackline Wahba, 2003. "Return International Migration and Geographical Inequality: The Case of Egypt," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 12(4), pages 500-532, December.
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    9. Mariapia Mendola, 2012. "Rural out‐migration and economic development at origin: A review of the evidence," Journal of International Development, John Wiley & Sons, Ltd., vol. 24(1), pages 102-122, January.
    10. Ragui Assaad & Caroline Krafft, 2013. "The Egypt labor market panel survey: introducing the 2012 round," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-30, December.
    11. Barham, Bradford & Boucher, Stephen, 1998. "Migration, remittances, and inequality: estimating the net effects of migration on income distribution," Journal of Development Economics, Elsevier, vol. 55(2), pages 307-331, April.
    12. Francesca Marchetta, 2012. "The Impact Of Migration On The Labor Markets In The Arab Mediterranean Countries," Middle East Development Journal (MEDJ), World Scientific Publishing Co. Pte. Ltd., vol. 4(01), pages 1-47.
    13. Flore Gubert & Thomas Lassourd & Sandrine Mesplé-Somps, 2010. "Transferts de fonds des migrants, pauvreté et inégalités au Mali. Analyse à partir de trois scénarios contrefactuels," Revue économique, Presses de Sciences-Po, vol. 61(6), pages 1023-1050.
    14. Anda David & Joachim Jarreau, 2016. "Determinants of Emigration: Evidence from Egypt," Working Papers 987, Economic Research Forum, revised Apr 2016.
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