International Migration and Labour Force Participation Rate: Evidence from Sub-Saharan Africa

AJEIGBE Omowumi Monisola, ADELEKE Oluwayemisi Kadijat, OYELEKE Olusola, OLUWAYEMISI Olatokunbo Aina, OLABODE Olayinka Samuel

Abstract

In recent time, the development of international migration as a simple essential feature of nearly all developed countries gave an indication to the strength and stability of the fundamental issue. Previous studies also established that migrant workers play a significant role in the labour market and contribute to the economies and societies of both their homes and destination countries. It is in the light of this that the study examined the interaction between international migration and labour force participation rate in sub-Saharan Africa (SSA) from 1990-2018. The study employed system Generalized Method of Moment to analyse a panel data of 46 SSA countries using variables such as net migration, international migrant stock (total), net remittances, labour force participation rate (total) and other control variables. Data were sourced from World Bank Development Indicator (2018). Results showed that net migration in the receiving countries has a significant positive relationship with labour force participation rate while the number of international migrant in the countries of origin revealed a significant negative relationship with the labour force participation rate. The findings further revealed that net remittances inflow has a significant negative relationship with labour force participation rate of the countries of origin. The study based on the findings, recommended that policy should be put in place to control the number of immigrants’ job seekers entering the sub-region which can spur unemployment for the receiving countries. Also inflow of remittances should be discouraged as a means of reducing migration outflow as the long run effect can trigger reduction in the labour force participation rate in sub-Saharan African countries. 

Keywords

International migration, Labour Force Participation rate, System GMM, sub-Saharan Africa, remittances.

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