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The Effect of International Migrant Remittances on Employment Patterns: Evidence from Kosovo

Author

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  • Arian Tahiri
  • Faruk Ahmeti
  • Burim Prenaj

Abstract

This study examines the effect of international migrant remittances on the employment patterns of individuals receiving them. To do that we use a nationally representative labor force survey conducted in Kosovo by Millennium Challenge Corporation. To address endogeneity issues, we employ propensity score-weighted Probit models by weighting every individual in the sample by the probability of receiving remittances based on their observed characteristics. The findings suggest that remittances decrease the employment probability of individuals who receive them, while at the same time increasing the probability of inactivity and being a family worker. The impacts are stronger for individuals from urban areas, workers over the age of 55, and individuals from non-Albanian ethnicities.

Suggested Citation

  • Arian Tahiri & Faruk Ahmeti & Burim Prenaj, 2023. "The Effect of International Migrant Remittances on Employment Patterns: Evidence from Kosovo," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 126-142.
    • Handle: RePEc:bas:econst:y:2023:i:1:p:126-142
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    More about this item

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • C39 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Other

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