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Table 4 Determinants of migration: unemployment and formality (IV estimates)

From: Migrating out of a crowded labor market: evidence from Egypt

 

(1)

(2)

Network

1.113

1.226

 

(0.306)

(0.277)

Wealth

0.012

0.012

 

(0.004)

(0.004)

Unemployment

−0.109

−0.107

(share)

(0.049)

(0.050)

Unemployment × network

3.969

3.897

 

(1.906)

(1.910)

Formal employment

−0.027

0.010

(share)

(0.015)

(0.026)

Formal × network

 

−1.319

  

(0.791)

Household size

0.005

0.005

 

(0.001)

(0.001)

Share of working-age men

0.112

0.114

 

(0.017)

(0.017)

Years of schooling, HH. head

0.000

0.000

 

(0.001)

(0.001)

First-stage F-stat

  

Network

35.9

50.8

Network × unemp.

20.5

19.7

Network × formal

 

23.2

Observations

10,271

10,271

  1. Standard errors in parentheses. Survey-weighted estimations, standard errors clustered at district level. Two-wave panel sample of households. Regressors are observed in t=1998, 2006. Dependent variable is 1 if a member of the household emigrated after t. The mean value of the dependent variable is 0.045. Model includes governorate fixed-effects and the controls: urban, year, dependency, share of working-age men, Male hh. head. IV: network variable is instrumented using old migration rates (based on pre-1998 departures when t=2006, pre-1990 when t=1998) in level and interaction terms. First-stage F-stat: Sanderson-Windmeijer multivariate F-stat of excluded instruments
  2. *** p<0.01; ** p<0.05; * p<0.1