Effects of Migration and Human Capital Formation in Albania

Albania has one of the world’s highest emigration rates, relative to its population, at -3.3 migrants per 1,000 people, and a total migrant population of more than 1.25 million in 2014, according to UN Department of Economic and Social Affairs data. In 2010 Albania was granted with visa-free travel to the Schengen area and this also affected the crossing of the borders and the circular migration across the land border between Greece and Albania was for many years, one of the most significant irregular migratory flows across the EU’s external borders. Although during the last years it is observed an increase number of return migrants, Albanian citizens continued to migrate and it is observed an increase of the number during 2014, and the new trend now is requesting asylum in EU member states increased during 2014. According to EUROSTAT data show that 65,000 Albanians applied for asylum in 2015, 55,000 of them sought asylum in Germany and 99 percent of Albanian asylum requests have been refused from European countries, half of them belong to the age group 18 - 34 years old. Due to the poor economic and living conditions in Albania, the labor market in Albania is still vulnerable and it affects the on-going migrant flows from Albania to the most developed labor markets of other countries. These migrant flows are directly linked with labor market development especially level of unemployment and poverty. Migration in Albania has major development impact and poverty implications in several levels. It has effects for individuals and their families, for origin and destination countries, and the national economy. At the individual level it shows that migrants benefit economically from their movements, their migration leads to better employment opportunities and income; at the household level in the home country migration reduces poverty at the family level and positively contributes to human capital formation, and improving education and healthcare conditions. Migration also has effects at the national level, bringing positive changes to the national economy.