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

Source: Economic Research Forum
Author(s): Anda David, Joachim Jarreau

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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, inequality-increasing 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…

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