Abstract

Limited migration from Egypt in the 1960s can be explained by the politics of the period and theoretical considerations associated with Egypt’s adoption of socialism during that decade. Starting in the mid-1970s, political and economic change at home, poor labor market performance, and growing demand for labor in the Gulf oil-exporting countries triggered substantial and sustained flows of Egyptian migrants, who also reached other destinations. The political economy of migration starkly changed, and the theoretical perspectives were altered, joining the mainstream. Families participated in financing their members’ migration projects. Departed workers relieved pressures on the labor market and sent remittances from their destinations, helping their families meet education, healthcare, housing, and other expenses and thus reducing their poverty. Returnees enjoyed upward mobility in the labor market and wage premiums, both indicative of skill acquisition during migration. Remittances assisted in reducing the deficit in the balance on current account. Yet, migration and remittances alone could not improve the labor market performance or keep poverty from persisting and increasing at the national level. In the 2020s, highly skilled migration in certain occupations is worrying. Effective and coordinated education, training, employment, and migration policies are called for to maximize the economic benefits of Egyptian migration.