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Remittances, Migrations Intentions, and Labor Participation in Kosovo

Author

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  • Genc Zhushi
  • Driton Qehaja

Abstract

This paper examines the intricate nexus between remittances, migration, and the labour force. It aims to enlighten the interplay of migration and remittances, analyzed in isolation, and their collective impact on the labour market across varying demographical strata. This analysis assumes particular pertinence for Kosovo, characterized by a notable intensity of migration fluxes and remittances. This study uses biprobit techniques to alleviate the endogeneity inherent in remittance and migration to evaluate the correlation between those and the labour force. The empirical data from the Millennium Century Corporation's survey was conducted in Kosovo in 2017. According to the findings, remittances and migration have a significant role in shaping the dynamics of the labour force, affecting inequalities across gender, age, and educational attainment. We surfaced compelling evidence of the disincentivizing ramifications of remittances vis-a-vis the labour force.

Suggested Citation

  • Genc Zhushi & Driton Qehaja, 2024. "Remittances, Migrations Intentions, and Labor Participation in Kosovo," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 6, pages 145-159.
    • Handle: RePEc:bas:econst:y:2024:i:6:p:145-159
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    References listed on IDEAS

    as
    1. Du, Yang & Park, Albert & Wang, Sangui, 2005. "Migration and rural poverty in China," Journal of Comparative Economics, Elsevier, vol. 33(4), pages 688-709, December.
    2. William W. Olney, 2015. "Remittances and the Wage Impact of Immigration," Journal of Human Resources, University of Wisconsin Press, vol. 50(3), pages 694-727.
    3. Florin Vadean & Teresa Randazzo & Matloob Piracha, 2019. "Remittances, Labour Supply and Activity of Household Members Left-Behind," Journal of Development Studies, Taylor & Francis Journals, vol. 55(2), pages 278-293, February.
    4. Finkelstein Shapiro, Alan & Mandelman, Federico S., 2016. "Remittances, entrepreneurship, and employment dynamics over the business cycle," Journal of International Economics, Elsevier, vol. 103(C), pages 184-199.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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