LABOUR EMIGRATION AND THE NIGERIAN LABOUR MARKET
Keywords:
Labour migration, labour market, unemployment, income inequality, labour participation, nonlinear autoregressive distributed lag. JEL Classification Codes: J61, J64, J31, J22.Abstract
Labour migration plays a crucial role in shaping labour market dynamics and productivity,
particularly in developing economies. This study is grounded in the neo-classical labour market
theory and it examines the impact of labour emigration on labour market conditions in Nigeria
from 1990 to 2022. Specifically, it investigates the effects of labour emigration on
unemployment, income inequality, and labour force participation. Employing the non-linear
autoregressive distributed lag (NARDL) estimation technique, three models were specified to
address each research objective. The findings reveal a mixed asymmetric relationship between
labour emigration, proxied by net migration, and unemployment in Nigeria. While increased
labour emigration is associated with higher unemployment in the short run, it contributes to a
reduction in unemployment over the long run. Regarding income inequality, the results indicate
that labour emigration exerts a significant long-run inverse asymmetric effect, with no notable
short-run impact. Additionally, labour emigration is found to influence labour force
participation asymmetrically, exhibiting a mixed effect in the long run and an inverse
asymmetric effect in the short run. These findings highlight the complex interactions between
labour emigration and key labour market indicators. In light of the results, this study
recommends that policymakers should implement targeted policies to enhance wage levels and
improve working conditions. Strengthening labour market policies may help mitigate adverse
short-term effects and promote labour retention, ensuring a more stable and equitable labour
market in Nigeria.
