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Ethnicity and remittances: Evidence from Kosovo

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  • Duval, Laetitia
  • Wolff, François-Charles

Abstract

The purpose of this paper is to investigate the role played by ethnicity on the determinants and welfare implications of transfers from abroad in Kosovo. This territory, in which the tension among ethnic groups is still the focus of international concern, is one of the primary recipients of remittances in the world. Using data collected in 2011 from 8000 households residing in Kosovo and 650 of their members living abroad, we focus on differences in the remittance behaviors of Serbs and Albanians who were involved in a civil war in the 1990s. Our results show that the probability of receiving money is much higher for the Albanians compared to the Serbs, which is related to differences in migration models between both ethnic groups. Remittances lead to a significant increase in the average level of per capita consumption for all ethnic groups even after accounting for endogeneity of the transfer variable.

Suggested Citation

  • Duval, Laetitia & Wolff, François-Charles, 2015. "Ethnicity and remittances: Evidence from Kosovo," Journal of Comparative Economics, Elsevier, vol. 43(2), pages 334-349.
    • Handle: RePEc:eee:jcecon:v:43:y:2015:i:2:p:334-349
    DOI: 10.1016/j.jce.2014.09.001
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    Cited by:

    1. Laetitia Duval & François-Charles Wolff, 2016. "“I even met happy gypsies”," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 24(4), pages 727-764, October.
    2. Möllers, Judith & Traikova, Diana & Herzfeld, Thomas & Bajrami, Egzon, 2017. "Study on rural migration and return migration in Kosovo," IAMO Discussion Papers 166, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    3. Howell, Anthony, 2017. "Impacts of Migration and Remittances on Ethnic Income Inequality in Rural China," World Development, Elsevier, vol. 94(C), pages 200-211.
    4. Abebe Shimeles & Tiguene Nabassaga, 2018. "Why Is Inequality High in Africa?," Journal of African Economies, Centre for the Study of African Economies, vol. 27(1), pages 108-126.
    5. Laetitia Duval & François-Charles Wolff, 2016. "Do remittances support consumption during crisis? Evidence from Kosovo," Oxford Development Studies, Taylor & Francis Journals, vol. 44(4), pages 479-492, October.
    6. repec:zbw:iamodp:261254 is not listed on IDEAS
    7. Laetitia Duval & François-­charles Wolff, 2015. "" I Even Met Happy Gypsies " : Life Satisfaction of Roma Youth in the Balkans," Working Papers hal-01219250, HAL.

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    More about this item

    Keywords

    Ethnicity; Remittances; Poverty; Inequality; Kosovo;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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