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Triadic relationship of remittances, migration and labor force

Author

Listed:
  • Genc Zhushi
  • Driton Qehaja

Abstract

Purpose - This study aims to investigate the relationship between Kosovo remittances, migration and labor force participation and seeks to uncover how migration and remittances, often considered separately, interact to shape labor market outcomes across gender, age and education groups. Design/methodology/approach - To analyze the relationship between remittances, migration and labor force participation, this study leverages multivariate probit (mvprobit) to rectify the endogeneity issue intrinsic from remittances and migration. Utilizing this robust methodological approach allows us to circumvent the limitations traditionally associated with biprobit analysis. The research is grounded in empirical evidence from the Millennium Century Corporation survey in Kosovo. Findings - The findings indicate that remittances and migration are pivotal determinants in shaping the contours of labor force participation, particularly influencing disparities across gender, age and educational attainment. Further, this study unearthed intriguing evidence suggesting the disincentivizing effect of remittances on labor force participation, alongside the potentially disruptive influence of prospective migration plans. Originality/value - The novelty of this work lies not only in the context-specific insights it provides into the socio-economic fabric of Kosovo—an area that has hitherto received limited scholarly attention—but also in its methodological innovation. The simultaneous application of mvprobit technique provides a nuanced approach to tackle the inherent endogeneity issue, thereby pushing the methodological frontiers of the field.

Suggested Citation

  • Genc Zhushi & Driton Qehaja, 2024. "Triadic relationship of remittances, migration and labor force," International Journal of Development Issues, Emerald Group Publishing Limited, vol. 23(3), pages 463-488, May.
    • Handle: RePEc:eme:ijdipp:ijdi-01-2024-0017
    DOI: 10.1108/IJDI-01-2024-0017
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