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Return Migration and Occupational Choice: Evidence from Albania

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  • Piracha, Matloob
  • Vadean, Florin

Abstract

Summary This paper explores the impact of return migration on the Albanian economy by analyzing the occupational choice of return migrants while explicitly differentiating between self-employment as either own account work or entrepreneurship. We find that the own account workers have characteristics closer to non-participants in the labor market (i.e., lower education levels), while entrepreneurship is positively related to schooling, foreign language proficiency, and savings accumulated abroad. Furthermore, compared to having not migrated, return migrants are significantly more likely to be entrepreneurs, showing the positive impact of migration on job-creating activities in Albania.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 38 (2010)
Issue (Month): 8 (August)
Pages: 1141-1155

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Handle: RePEc:eee:wdevel:v:38:y:2010:i:8:p:1141-1155

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Web page: http://www.elsevier.com/locate/worlddev

Related research

Keywords: occupational choice return migration sample selection Europe Albania;

References

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  1. Alice Mesnard, 2004. "Temporary migration and capital market imperfections," Oxford Economic Papers, Oxford University Press, vol. 56(2), pages 242-262, April.
  2. Hill, John K., 1987. "Immigrant decisions concerning duration of stay and migratory frequency," Journal of Development Economics, Elsevier, vol. 25(1), pages 221-234, February.
  3. Zissimopoulos, Julie M. & Karoly, Lynn A., 2007. "Transitions to self-employment at older ages: The role of wealth, health, health insurance and other factors," Labour Economics, Elsevier, vol. 14(2), pages 269-295, April.
  4. Blanchflower, D.G. & Oswald, A., 1991. "What Makes an Entrepreneur?," Economics Series Working Papers 99125, University of Oxford, Department of Economics.
  5. Vadean, Florin & Piracha, Matloob, 2009. "Circular Migration or Permanent Return: What Determines Different Forms of Migration?," IZA Discussion Papers 4287, Institute for the Study of Labor (IZA).
  6. Matloob Piracha & Augustin de Coulon, 2003. "Self-Selection and the Performance of Return Migrants: the Source Country Perspective," CEP Discussion Papers dp0576, Centre for Economic Performance, LSE.
  7. Carletto, Calogero & Kilic, Talip, 2009. "Moving up the ladder ? the impact of migration experience on occupational mobility in Albania," Policy Research Working Paper Series 4908, The World Bank.
  8. McCormick, Barry & Wahba, Jackline, 2001. "Overseas Work Experience, Savings and Entrepreneurship amongst Return Migrants to LDCs," Scottish Journal of Political Economy, Scottish Economic Society, vol. 48(2), pages 164-78, May.
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  10. Mariapia Mendola & Gero Carletto, 2009. "International Migration and Gender Differentials in the Home Labor Market: Evidence from Albania," Development Working Papers 272, Centro Studi Luca d\'Agliano, University of Milano.
  11. Dustmann, Christian, 2003. "Return migration, wage differentials, and the optimal migration duration," European Economic Review, Elsevier, vol. 47(2), pages 353-369, April.
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  14. Ilahi, Nadeem, 1999. "Return Migration and Occupational Change," Review of Development Economics, Wiley Blackwell, vol. 3(2), pages 170-86, June.
  15. Dustmann, Christian & Kirchkamp, Oliver, 2002. "The optimal migration duration and activity choice after re-migration," Journal of Development Economics, Elsevier, vol. 67(2), pages 351-372, April.
  16. Kilic, Talip & Carletto, Calogero & Davis, Benjamin & Zezza, Alberto, 2007. "Investing back home : return migration and business ownership in Albania," Policy Research Working Paper Series 4366, The World Bank.
  17. Dustmann, Christian, 1997. "Return migration, uncertainty and precautionary savings," Journal of Development Economics, Elsevier, vol. 52(2), pages 295-316, April.
  18. Djajic, Slobodan & Milbourne, Ross, 1988. "A general equilibrium model of guest-worker migration : The source-country perspective," Journal of International Economics, Elsevier, vol. 25(3-4), pages 335-351, November.
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  20. Azzarri, Carlo & Carletto, Calogero, 2009. "Modeling migration dynamics in Albania : a hazard function approach," Policy Research Working Paper Series 4945, The World Bank.
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Citations

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Cited by:
  1. Piracha, Matloob & Randazzo, Teresa & Vadean, Florin, 2013. "Remittances and Occupational Outcomes of the Household Members Left-Behind," IZA Discussion Papers 7582, Institute for the Study of Labor (IZA).
  2. Sylvie Démurger & Hui Xu, 2010. "Return migrants: The rise of new entrepreneurs in rural China," Working Papers 1008, Groupe d'Analyse et de Théorie Economique (GATE), Centre national de la recherche scientifique (CNRS), Université Lyon 2, Ecole Normale Supérieure.
  3. J. William Ambrosini & Karin Mayr & Giovanni Peri & Dragos Radu, 2011. "The Selection of Migrants and Returnees: Evidence from Romania and Implications," NBER Working Papers 16912, National Bureau of Economic Research, Inc.
  4. Mercier, Marion & Chauvet, Lisa, 2014. "Do return migrants transfer political norms to their origin country? Evidence from Mali," Economics Papers from University Paris Dauphine 123456789/12585, Paris Dauphine University.
  5. Marchetta, Francesca, 2012. "Return Migration and the Survival of Entrepreneurial Activities in Egypt," World Development, Elsevier, vol. 40(10), pages 1999-2013.
  6. Mendola, Mariapia & Carletto, Calogero, 2012. "Migration and gender differences in the home labour market: Evidence from Albania," Labour Economics, Elsevier, vol. 19(6), pages 870-880.
  7. Marcus Böhme, 2013. "Does Migration Raise Agricultural Investment? An Empirical Analysis for Rural Mexico," Kiel Working Papers 1840, Kiel Institute for the World Economy.
  8. Giulietti, Corrado & Wahba, Jackline & Zimmermann, Klaus F., 2013. "Entrepreneurship of the Left-Behind," IZA Discussion Papers 7270, Institute for the Study of Labor (IZA).
  9. Ambrosini, J. William & Mayr, Karin & Peri, Giovanni & Radu, Dragos, 2012. "The Selection of Migrants and Returnees in Romania: Evidence and Long-Run Implications," IZA Discussion Papers 6664, Institute for the Study of Labor (IZA).
  10. Mezger Kveder, Cora Leonie & Flahaux, Marie-Laurence, 2013. "Returning to Dakar: A Mixed Methods Analysis of the Role of Migration Experience for Occupational Status," World Development, Elsevier, vol. 45(C), pages 223-238.

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