International Migration and Labor Supply in Africa: A Panel Data Analysis of 37 Countries from 2000 to 2024

Abstract

This study analyzes the impact of international migration on labor supply across 37 African countries over the 2000–2024 period. Using panel data and an econometric approach that combines a random-effects model with System GMM (Generalized Method of Moments) estimation, the results show that international migration has a positive and significant effect on labor supply. Per capita income also positively influences labor market participation, whereas the effects of urbanization and education appear less robust depending on the specific econometric specifications used. The GMM model results confirm the robustness of the positive impact of migration and economic development on labor supply, while highlighting that urbanization and education require favorable institutional and economic conditions to fully exert their effects. Consequently, the study recommends strengthening policies to engage the diaspora, channeling remittances into productive investments, and improving the alignment between education systems and the needs of African labor markets.