Egyptian men working abroad: Labour supply responses by the women left behind

Female labour force participation has remained low in Egypt. This paper examines whether male international migration provides a leeway for women to enter the labour market and/or to increase their labour supply. In line with previous studies, we find a decrease in wage work particularly in urban areas. However, women living in rural areas and affected by migration are much more likely to be employed in non-wage activities (i.e. unpaid family work) and subsistence work compared to women in non-migrant households. Furthermore, we find evidence that this labour supply response is driven by the household's need to replace the migrant's labour rather than by a loosening of a financing constraint on family enterprises made possible by the flow of remittances.

Research Highlights
► Overall, male migration leads to an increase in female labour supply in rural Egypt.
► This increase in labour supply is essentially due to an increase in unpaid family labour.
► Female wage labour actually declines for women in migrant households.
► The impact of migration depends on the reason for migration.
► Remittance receipt enables households to limit the increase in labour supply.