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Migrating out of a crowded labor market: evidence from Egypt

Author

Listed:
  • Joachim Jarreau

    (LEDa - Laboratoire d'Economie de Dauphine - Université Paris-Dauphine)

  • Anda David

    (Institut de Recherche pour le Développement (IRD), LEDA-DIAL - Développement, Institutions et Modialisation - LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris-Dauphine - CNRS - Centre National de la Recherche Scientifique, LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris-Dauphine - CNRS - Centre National de la Recherche Scientifique)

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

  • Joachim Jarreau & Anda David, 2017. "Migrating out of a crowded labor market: evidence from Egypt," Post-Print hal-01840241, HAL.
  • Handle: RePEc:hal:journl:hal-01840241
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-01840241
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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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