THE IMPACT OF MIGRATION ON THE LABOR MARKETS IN THE ARAB MEDITERRANEAN COUNTRIES

We provide an extensive theoretical overview of the rich array of effects that migration out of Arab Mediterranean Countries can produce on their labor markets and a review of the existing empirical evidence. Migration is found to reduce unemployment, but it exerts little to no effect on participation rates, because of the cultural resistance to a more active female engagement, and because of the positive income effect brought about by remittances. Furthermore, the brain drain is found to be a serious concern for some Arab Mediterranean Countries (AMCs), while other countries stand to benefit from skilled migration. While relevant knowledge gaps remain, the value-added of this paper is represented by the layout of a broad analytical framework to systematize the findings for future research.