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Welcome Home in a Crisis: Effects of Return Migration on the Non-Migrants’ Wages and Employment

Author

Listed:
  • Hausmann, Ricardo

    (Harvard University)

  • Nedelkoska, Ljubica

    (Harvard University)

Abstract

Albanian migrants in Greece were particularly affected by the Greek crisis, which spurred a wave of return migration that increased Albania's labor force by 5% between 2011 and 2014 alone. We study how this return migration affected the employment chances and earnings of Albanians who never migrated. We find positive effects on the wages of low-skilled non-migrants and overall positive effects on employment. The gains partially offset the sharp drop in remittances in the observed period. The employment gains are concentrated in the agricultural sector, where most return migrants engage in self-employment and entrepreneurship. Businesses run by return migrants seem to pull Albanians from non-participation, self employment and subsistence agriculture into commercial agriculture.

Suggested Citation

  • Hausmann, Ricardo & Nedelkoska, Ljubica, 2017. "Welcome Home in a Crisis: Effects of Return Migration on the Non-Migrants’ Wages and Employment," Working Paper Series rwp17-015, Harvard University, John F. Kennedy School of Government.
    • Handle: RePEc:ecl:harjfk:rwp17-015
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    References listed on IDEAS

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    Cited by:

    1. Sandra M. Leitner, 2021. "Net Migration and its Skill Composition in the Western Balkan Countries between 2010 and 2019: Results from a Cohort Approach," wiiw Policy Notes 47, The Vienna Institute for International Economic Studies, wiiw.
    2. Xu, Xuelu & Jin, Zeyang, 2024. "Impact of Return Migration on Employment Structure: Evidence from Rural China," Journal of Asian Economics, Elsevier, vol. 91(C).
    3. Sandra M. Leitner, 2021. "Net Migration and its Skill Composition in the Western Balkan Countries between 2010 and 2019: Results from a Cohort Approach Analysis," wiiw Working Papers 197, The Vienna Institute for International Economic Studies, wiiw.
    4. Zhang, Sihan & Qiu, Leiju & Zhao, Daxuan, 2021. "Technological diffusion, migration and entrepreneurship in China," Journal of Asian Economics, Elsevier, vol. 75(C).

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    More about this item

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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