Jackline Wahba

Overseas Work Experience, Savings and Entrepreneurship Amongst Return Migrants to LDCs

This paper contributes to a small but rapidly growing literature concerned with the potentially substantial implications of international migration for economic development in LDCs. We study the linkages between overseas employment, savings and entrepreneurial activity on return. In an econometric model of the probability of entrepreneurial activity, we find evidence supporting the hypotheses that both overseas savings, and the duration of stay overseas increase the probability of becoming an entrepreneur amongst literate returnees to Egypt. Amongst illiterate returnees, overseas savings alone increase the probability of becoming an entrepreneur. The results for literates suggest that skill acquisition overseas may matter more substantially than overcoming a savings constraint in explaining how overseas opportunities influence entrepreneurship on return. For illiterates, who usually accept menial positions overseas that offer little opportunity for learning, the opposite obtains.

Overseas Employment and Remittances to a Dual Economy

Overseas employment has become more commonplace, and remittances have increased in similar proportions. For poor countries, remittances often substantially influence domestic expenditures and real exchange rates. We study overseas employment, remittances and domestic underemployment in a simple general equilibrium model with a non-traded good and minimum wage. The influence of population growth, rural productivity, and family altruism are examined. If remittances per migrant exceed domestic productivity then multiple equilibria may occur exhibiting high or low overseas employment. We discuss how the equilibrium with highest overseas employment conditionally Pareto dominates the other equilibria, and analyse policy co-ordination.

The Impact of Labour Market Dynamics on the Return-Migration of Immigrants

Using administrative panel data on the entire population of new labor immigrants to the Netherlands, we estimate the effects of individual labor market spells on immigration durations using the timing-of-events method. The model allows for correlated unobserved heterogeneity across migration, unemployment, and employment processes. We find that unemployment spells increase return probabilities for all immigrant groups, while reemployment spells typically delay returns.

Welfare Magnet Hypothesis, Fiscal Burden and Immigration Skill Selectivity

In this paper, we investigate the effect of welfare state generosity on the difference between skilled and unskilled migration rates, and the role of mobility restriction in shaping this effect. We utilize the free labor movement within the European Union plus Norway and Switzerland (EUR) and the restricted movement from outside the EUR in order to compare the free-migration regime to the restricted-migration regime. We find strong support for the magnet hypothesis under the free-migration regime, and the fiscal burden hypothesis under the restricted-migration regime, even after controlling for differences in educational quality and returns to skills in source and host countries.

The transmission of Dutch disease and labour migration

This paper examines the effects of the oil-boom in the Gulf states in the framework of a Dutch disease model. The model indicates that labour immigration may offset the effects of Dutch disease in the Gulf states. However, this may effectively shift the symptoms of Dutch disease to labour-exporting countries. Consequently, the theoretical model shows that through labour migration, Dutch disease can be transmitted to sending countries.

Welfare Magnet Hypothesis, Fiscal Burden, and Immigration Skill Selectivity†

In this paper, we investigate the effect of welfare state generosity on the difference between skilled and unskilled migration rates, and the role of mobility restriction in shaping this effect. We utilize the free labor movement within the European Union plus Norway and Switzerland (EUR) and the restricted movement from outside the EUR in order to compare the free-migration regime to the restricted-migration regime. We find strong support for the magnet hypothesis under the free-migration regime, and the fiscal burden hypothesis under the restricted-migration regime, even after controlling for differences in educational quality and returns to skills in source and host countries.

Do market wages influence child labor and child schooling

This paper provides empirical evidence on the joint determinants of child labor, and child schooling, using individual level data from Egypt. The main findings are as follows: 1) A ten percent increase in the illiterate male market wage decreases the probability of child labor by 21.5 percent for boys, and 13.1 percent for girls. 2) Higher local regional income inequality increases the likelihood of child labor. 3) Parents who were child laborers themselves, are more likely to send their children out to work. 4) Local labor market conditions - the share of adults engaged in the public sector, or in non-regular jobs - play an important role in influencing child labor participation. 5) There is a trade-off between child labor, and child schooling. The results suggest that not only is poverty the main cause of child labor, but that child labor perpetuates poverty as well.

Entrepreneurship of the Left-Behind

While there is evidence that return migration promotes entrepreneurship and self-employment of those who migrated, previous studies have not focused on whether migration provides the same benefits to individuals who did not migrate. Using a unique dataset that provides information on both current and return migrants in rural China (RUMiC), we investigate the impact of migration on entrepreneurship among individuals with no migration experience. We explore the self-employment choices of individuals who live in households with return migrants and individuals who live in households that have migrants currently in the city, comparing them with individuals living in non-migrant households. Our methodology allows us to control for the potential endogeneity between the migration and self-employment decisions. The results show that return migration promotes self-employment among household members who have not migrated. However, left-behind individuals are less likely to be self-employed when compared with those living in non-migrant households.

Liberalizing trade in financial services: The Uruguay Round and the Arab countries

Summary As a result of the Uruguay Round, members of the World Trade Organization (WTO) are committed to initiating gradual liberalization in their service sectors, i.e., to opening their markets to foreign service suppliers. The purpose of this paper is to examine the prospects and problems of trade liberalization in financial services in the Arab countries. The paper draws on the theoretical contributions outlining the case for financial liberalization in developing countries. It reviews the recent performance, structure and regulation of the banking systems in some Arab countries. The main conclusion is that Arab countries do not meet the prerequisites for successful financial liberalization. There is a clear need for internal reform of the financial systems first before opening up to external competition.

Return migration and economic development

This chapter reviews the economics literature on return migration. It begins by documenting the extent of return migration and shows that it is far from negligible. It discusses the data challenges and the methodological hurdles in measuring return migration and tackling the double selectivity associated with the initial emigration and with the return. The chapter also provides a coherent framework on the determinants of return migration reviewing both the theoretical and empirical literature. Focusing then on the role played by returnees in the economic development of their country of origin, this chapter draws together the small scattered literature on the contribution of return migration in reducing credit constraints, allowing for brain circulation and gains, and transmitting of norms to sending economies. Yet it underscores the great need for better data measuring and capturing return migration.