Return Migration and Earnings Mobility in the Middle East and North Africa

Authors

DOI:

https://doi.org/10.25071/1874-6322.40500

Keywords:

Return migration, intergenerational mobility, MENA

Abstract

This study examines how workers’ pre-existing socio-economic profiles and
cross-border return-migration experiences affect their lifetime and
intergenerational transmission of economic status in three Middle East and
Northern Africa (MENA) countries. We apply transition analysis and
instrumental variable regressions to seven harmonized Labor Market Panel
Surveys - Egypt (1998, 2006, 2012), Jordan (2010, 2016), and Tunisia
(2014) - to link the current economic outcomes of prime-age male workers
to those in prior years and to those of their fathers. Real earnings in prior
years are imputed using the historic positions of individuals, as well as the
job-type and occupation group cell means observed in the survey year. We
find that migration decisions and destinations are driven by economic,
geographic, and family-history considerations. Return migrants land
higher-earning jobs and are more mobile across generations than
never-migrants. They outperform non-migrants, not only now but also in
previous years and, according to evidence, even before their migration spell.
After controlling for mitigating factors, the role of migration disappears,
implying that individual-level effects and demographics are responsible.

References

Akee R., and M.R. Jones 2019 “Immigrants’ earnings growth and return migration from the U.S.: Examining their determinants using linked survey and administrative data”, NBER Working Paper 25639. DOI 10.3386/w25639

AlAzzawi S., and V. Hlásny 2019 “Household asset wealth and female labor supply in MENA”, The Quarterly Review of Economics and Finance 73(1): 3–13. doi.org/10.1016/j.qref.2019.08.002

—– 2018 “Youth vulnerability in Egypt, Jordan, and Tunisia: dimensions and determinants”, Economic Research Forum Working Paper No 1275, December.

Amara, M., and H. Jemmali 2018 “Deciphering the relationship between internal migration and regional disparities in Tunisia”, Social Indicators Research 135(1): 313–331. doi.org/10. 1007/s11205-016-1487-y

Amer M., and P. Fargues 2014 “Labour market outcomes and Egypt’s migration potential”, European University Institute, Working Paper, RSCAS, 2014/55, Migration Policy Centre.

Amin G. 2000 Whatever happened to the Egyptians? Changes in Egyptian Society from 1950 to the Present Cairo: American University in Cairo Press.

Assaad R. 2014 “The structure and evolution of employment in Jordan”. in R. Assaad (ed.) The Jordanian Labor Market in the New Millennium Oxford: Oxford University Press

Assaad R., C. Krafft, J. Roemer, and D. Salehi-Isfahani 2018 “Inequality of Opportunity in Wages and Consumption in Egypt”, Review of Income and Wealth 64: S26–S54. doi.org/10.1111/roiw.12289

Azam J-P, and Gubert F. 2006 “Migrants’ Remittances and the Household in Africa: A Review of Evidence”, Journal of African Economies 15: 426–462.

Belhaj Hassine N. 2015 “Economic inequality in the Arab region”, World Development 66: 532–556. https://doi.org/10.1016/j.worlddev.2014.09.011.

Bertoli S., and F. Marchetta 2015 “Bringing it all back home–return migration and fertility choices”, World Development 65: 27–40. doi.org/10.1016/j.worlddev.2013.08.006

Bhattacharya D., and B. Mazumder 2011 “A Nonparametric Analysis of Black-White Differences in Intergenerational Income Mobility in the United States”, Quantitative Economics 2(3): 335–379. doi.org/10.3982/QE69

Bibi S., and M. Nabli 2010 “Equity and inequality in the Arab region”, Economic Research Forum, ERF Policy Research Report No. 33.

Binzel C., and R. Assaad 2011 “Egyptian men working abroad: Labour supply responses by the women left behind”, Labour Economics 18: S98–S114. doi.org/10.1016/j.labeco.2011.03.002

Borjas G.J., and B. Bratsberg 1996 “Who leaves? The outmigration of the foreign-born”, The Review of Economics and Statistics 78(1): 165–176.

Bouhga-Hagbe J. 2006 “Altruism and workers’ remittances: Evidence from selected countries in the Middle East and Central Asia”, IMF Working Papers 130 (A001).

Bure, Jaroslav 2008 Main Characteristic and Development Trends of Migration in the Arab World Prague: Institute of International Relations.

Chabaan J., and W. Mansour 2012 “The impact of remittances on education in Jordan, Syria and Lebanon”, Economic Research Forum Working Paper No. 684.

Chetty R., N. Hendren, P. Kline, E. Saez, and N. Turner 2014 “Is the United States still a land of opportunity? Recent trends in intergenerational mobility”, American Economic Review 104(5): 141–147.

David A., and J. Jarreau 2015 “Short and long-term impacts of emigration on origin households: the case of Egypt”, Economic Research Forum Working Paper No. 977.

—– 2016 “Determinants of emigration: evidence from Egypt”, Economic Research Forum Working Paper No. 987.

—– 2017 “Migrating out of a crowded labor market: evidence from Egypt”, IZA Journal of Development and Migration 7(6). doi.org/10.1186/s40176-017-0092-4

David A., and A. Lenoël 2016 “International emigration and the labour market outcomes of women staying behind: the case of Morocco”, Papiers de Recherche, 23, Agence française de développement.

David A., and M.A. Marouani 2013a “International labor mobility and employment interactions in Tunisia”, Economic Research Forum Working Paper No. 804.

—– 2013b “The impact of labor mobility on unemployment: a comparison between Jordan and Tunisia”, Economic Research Forum Working Paper No. 823.

—– 2013c “The labor mobility-employment nexus: A general equilibrium analysis for Jordan”, Economic Research Forum Working Paper No. 824.

—– 2016 “The Impact of Emigration on MENA Labor Markets”, Economic Research Forum Policy Brief No. 21.

—– 2017 “Migration patterns and labor market outcomes in Tunisia”, Economic Research Forum Working Paper No. 1166.

David A., and C.J. Nordman 2017 “Skill mismatch and return migration in Egypt and Tunisia”, Espace populations sociétés 2017/1. doi.org/10.4000/eps.7110

De Haas H., T. Fokkema, and M.F. Fihri 2015 “Return Migration as Failure or Success? The Determinants of Return Migration Intentions Among Moroccan Migrants in Europe”, Journal of International Migration and Integration 16(2): 415–429. doi.org/10.1007/s12134-014-0344-6

De la Roca J. 2017 “Selection in initial and return migration: Evidence from moves across Spanish cities”, Journal of Urban Economics 100: 33–53. doi.org/10.1016/j.jue.2017.04.004

De Silva S.J., and C. Silva-Jáuregui 2004 “Migration and trade in MENA: Problems or solutions?”, Middle East and North Africa Working Paper Series, MNA No. 40 Washington DC: World Bank.

Devarajan S., and E. Ianchovichina 2018 “A broken social contract, not high inequality, led to the Arab Spring”, Review of Income and Wealth 64(S1): S5–S25. doi.org/10.1111/roiw.12288

Djajic S., M.G. Kirdar, and A. Vinogradova 2016 “Source-country earnings and emigration”,Journal of International Economics 99: 46–67.

doi.org/10.1016/j.jinteco.2015.12.001

Dustmann, C. 2008 “Return migration, investment in children, and intergenerational mobility: comparing sons of foreign- and native-born fathers”, Journal of Human Resources 43(2): 299–324. doi: 10.3368/jhr.43.2.299

Dustmann C., and O. Kirchkamp 2002 “The optimal migration duration and activity choice after re-migration”, Journal of Development Economics 67(2): 351–372. doi.org/10.1016/S0304-3878(01)00193-6

Dustmann C., and J. Mestres 2010 “Remittances and temporary migration”, Journal of Development Economics 92(1): 62–70. doi.org/10.1016/j.jdeveco.2008.12.002

El Enbaby H., and R. Galal 2015 “Inequality of opportunity in individuals’ wages and households’ assets in Egypt”, Economic Research Forum Working Paper No. 942.

El-Mallakh N., and J. Wahba 2021a “Return migrants and the wage premium: Does the legal status of migrants matter?”, IZA Discussion Paper Series No. 14492.

—– 2021b “Upward or downward: occupational mobility and return migration”, World Development 137: 105203. doi.org/10.1016/j.worlddev.2020.105203

Elder S., and G. Rosas 2015 Global employment trends for youth 2015: scaling up investments in decent jobs for youth Geneva: International Labour Organization.

European Bank for Reconstruction and Development (EBRD) 2013 “Transition report 2013: Stuck in transition?” Office of the Chief Economist, EBRD, London.

European Commission Directorate-General for Economic and Financial Affairs (EC-DG ECFIN) 2010a “Final report & thematic background papers”, in P. Fargues and I. Martin (eds), Labour markets performance and migration flows in Arab Mediterranean countries: determinants and effects, Occasional papers 60 (April), Volume 1.

—– 2010b “National background papers Maghreb (Morocco, Algeria, Tunisia)” [in French], in P. Fargues and I. Martin (eds), Labour markets performance and migration flows in Arab Mediterranean countries: determinants and effects, Occasional papers 60 (April), Volume 2.

—– 2010c “National background papers Mashreq (Egypt, Palestine, Jordan, Lebanon, Syria)”, in P. Fargues and I. Martin (eds), Labour markets performance and migration flows in Arab Mediterranean countries: determinants and effects, Occasional papers 60 (April), Volume 3.

Fargues P. 2009 “Migrations méditerranéennes: Rapport 2008–2009”, Robert Schuman Centre for Advanced Studies, San Domenico di Fiesole (FI): European University Institute, Florence.

Flahaux M.-L., and H. De Haas 2016 “African migration: trends, patterns, drivers”, Comparative Migration Studies 4(1): 1–25. doi.org/10.1186/s40878-015-0015-6

Gmelch G. 1980 “Return migration”, Annual Review of Anthropology 9: 135–159.

Graw K., and S. Schielke 2012 The Global Horizon: Expectations of Migration in Africa and the Middle East Leuven: Leuven University Press.

Gubert F., and C.J. Nordman 2008 “Return migration and small enterprise development in the Maghreb”, Technical/Analytical Report, MIREM-AR, 2008/02, [Return Migration and Development Platform (RDP)]

Hlásny V. 2017 “Evolution of opportunities for early childhood development in Arab countries”, International Journal of Human Rights in Healthcare 10(4): 256–276. https://doi.org/10.1108/IJHRH-11-2016-0022.

Hlásny V., and S. AlAzzawi 2018 “Return migration and socioeconomic mobility in MENA: evidence from labour market panel surveys”, UNU-WIDER Working Paper 2018/35.

—– 2019 “Asset inequality in the MENA: the missing dimension?”, The Quarterly Review of Economics and Finance 73(1): 44–55. doi.org/10.1016/j.qref.2018.07.010

Hlásny V., L. Ceriani, and P. Verme 2022 “Bottom incomes and the measurement of poverty and inequality”, The Review of Income and Wealth 68(4): 970–1006. doi.org/10.1111/roiw.12535

Ibrahim S.E. 1982 “Social mobility and income distribution in Egypt, 1952-1977”, in G. AbdelKhalek, R. Tignor (Eds.) The Political Economy of Income Distribution in Egypt New York: Holmes & Meier. pp. 375–434.

Keller J., S.J. Silva, E. Murrugarra, and J. Blomquist 2010 Labor Migration from North Africa: Development Impact, Challenges and Policy Options, Vol.1 Main Report. Washington, D.C.: World Bank Group.

Marchetta F. 2012 “The Impact of Migration on the Labor Markets in the Arab Mediterranean Countries”, Middle East Development Journal 4(1): 1–47.

McCormick B., and J. Wahba 2001 “Overseas work experience, savings and entrepreneurship amongst return migrants to LDCs”, Scottish Journal of Political Economy 48(2): 164–178. doi.org/10.1111/1467-9485.00192

McCormick B., and J. Wahba 2003 “Return international migration and geographical inequality: The case of Egypt”, Journal of African Economies 12(4): 500–532. doi.org/10.1093/jae/12.4.500

McKenzie D., S. Stillman, and J. Gibson 2010 “How Important is Selection? Experimental versus Non-Experimental Measures of the Income Gains from Migration”, Journal of the European Economic Association 8(4): 913–945. doi.org/10.1111/j.1542-4774.2010.tb00544.x

McKenzie D., and H. Rapoport 2007 “Network effects and the dynamics of migration and inequality: Theory and evidence from Mexico”, Journal of Development Economics 84(1):1–24. doi.org/10.1016/j.jdeveco.2006.11.003

McKenzie D.J., and M.J. Sasin 2007 “Migration, Remittances, Poverty, and Human Capital: Conceptual and empirical challenges”, Policy Research Working Paper No. 4272. Washington, DC: World Bank. hdl.handle.net/10986/7453

Mesnard A. 2004a “Temporary Migration and Capital Market Imperfections”, Oxford Economic Papers 56(2): 242–262. doi.org/10.1093/oep/gpf042

Mesnard A. 2004b “Temporary migration and self-employment: evidence from Tunisia”, Brussels Economic Review 47(1): 119–138.

Moraga J.F-H. 2011 “New evidence on emigrant selection”, The Review of Economics and Statistics 93(1): 72–96. doi.org/10.1162/REST_a_0050

—– 2013 “Understanding different migrant selection patterns in rural and urban Mexico”, Journal of Development Economics 103: 182–201. doi.org/10.1016/j.jdeveco.2013.02.005

Munshi, K. 2015 “Community Networks and Migration”, in: J. Bramoullé, A. Galeotti, and B.W. Rogers (Eds.)Oxford Handbook on the Economics of Networks Oxford: Oxford University Press.

Nilsson B., and R. Ramadan 2020 “Migration and Inequalities around the Mediterranean Sea”, Economic Research Forum Working Paper No. 1390.

Nugent J.B., and M. Saleh 2009 “Intergenerational transmission of, and returns to human capital and changes therein over time: empirical evidence from Egypt”, Economic Research Forum Working Paper No. 468.

Olesen H. 2002 “Migration, return and development: an institutional perspective”, International Migration 40(5): 125–150. doi.org/10.1111/1468-2435.00214

Oster E. 2019 “Unobservable selection and coefficient stability: theory and evidence”, Journal of Business & Economics Statistics 37(2): 187–204. doi.org/10.1080/07350015.2016.1227711

Özden Ç., C.R. Parsons, M. Schiff, and T.L. Walmsley 2011 “Where on Earth is Everybody? The Evolution of Global Bilateral Migration, 1960–2000”,The World Bank Economic Review 25(1):12–56. doi.org/10.1093/wber/lhr024

Papademetriou D.G., W. Somerville, and M. Sumption 2009 “The social mobility of immigrants and their children”, Washington: Migration Policy Institute.

Ramadan R., V. Hlásny, and V. Intini 2018 “Inter-group expenditure gaps in the Arab region and their determinants: application to Egypt, Jordan, Palestine and Tunisia”, The Review of Income and Wealth 64(s1): S145–S188. doi.org/10.1111/roiw.12396

Rooth D.O., and J. Saarela 2007 “Selection in migration and return migration: Evidence from micro data”, Economics Letters 94(1): 90–95. doi.org/10.1016/j.econlet.2006.08.006

Shorrocks A.F. 1978 “The measurement of mobility”, Econometrica 46(5): 1013–1024.

Sirkeci I., J.H. Cohen, and D. Ratha (Eds.) 2012 Migration and remittances during the global financial crisis and beyond Washington: World Bank Publications.

Solon G. 2014 “Theoretical models of inequality transmission across multiple generations”, Research in Social Stratification and Mobility 35: 13–18. doi.org/10.1016/j.rssm.2013.09.005

Wahba J. 2007 “Returns to Overseas Work Experience: The Case of Egypt” in C. Ozden and M. Schiff (Eds.) International Migration, Economic Development & Policy Washington: World Bank, pp. 235–258.

Wahba J. 2013 “The impact of migration on human capital in MENA”, Economic Research Forum, Policy Perspective No. 10

—– 2014 “Immigration, emigration and the labor market in Jordan”, in R. Assaad (Ed.) The Jordanian Labor Market in the New Millennium Oxford: Oxford University Press.

—– 2015a “Selection, selection, selection: the impact of return migration”, Journal of Population Economics 28(3): 535–563. doi.org/10.1007/s00148-015-0541-4

—– 2015b “Return migration and development”, in Robert E.B. Lucas (Ed.) International Handbook on Migration and Economic Development Cheltenham, UK: Edward Elgar. doi.org/10.4337/9781782548072.00016

—– 2015c “Through the key hole: international migration in Egypt”, in R. Assaad, C. Krafft (eds.) The Egyptian Labor Market in an Era of Revolution Oxford: Oxford University Press, pp. 198–217.

Wahba J., and Y. Zenou 2012 “Out of sight, out of mind: migration, entrepreneurship and social capital”, Regional Science and Urban Economics 42(5): 890–903.

World Bank Group 2016 Migration and Remittances Factbook 2016, 3rd ed. Washington, D.C.: World Bank.

Published

2023-06-17

How to Cite

Hlasny, V., & AlAzzawi, S. (2023). Return Migration and Earnings Mobility in the Middle East and North Africa. Journal of Income Distribution®. https://doi.org/10.25071/1874-6322.40500

Issue

Section

Articles

Similar Articles

<< < 8 9 10 11 12 13 

You may also start an advanced similarity search for this article.