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Moving up the ladder ? the impact of migration experience on occupational mobility in Albania

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  • Carletto, Calogero
  • Kilic, Talip

Abstract

The contribution of return migrants to economic development in source countries can be significant. Overseas savings of returnees may lead to improvements in household welfare and provide liquidity for investments in the face of credit market failures. Labor market experience and skills acquired abroad may also lead migrants to find occupations higher in the skill and remuneration spectrum upon return. This study uses the 2005 Albanian Living Standards Measurement Study Survey and estimates the impact of international migration experience on the occupational mobility of return migrants vis a vis working-age Albanian residents that never migrated. Controlling for the non-random nature of international migration and return, the results show that past migration experience increases the likelihood of upward occupational mobility. Exploring the heterogeneity of impact by host country indicates that the positive effect of past migration experience on upward occupational mobility is driven by past migration experience in Italy and countries further a field, while past migration experience in Greece does not exert any significant impact on mobility outcomes. The results, which are consistent across different sample specifications and outcome variables measuring occupational mobility, hint at the link between migration and human/financial capital formation among migrants and foster optimism concerning the positive effect of return migration on economic development. This insight is particularly important since remittances from permanent migrants, which have fueled the impressive growth performance of the country in the recent era, may taper off in the medium to long term with the decline in out-migration and growing global economic woes.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 4908.

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Date of creation: 01 Apr 2009
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Handle: RePEc:wbk:wbrwps:4908

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Related research

Keywords: Population Policies; Labor Markets; Voluntary and Involuntary Resettlement; Human Migrations&Resettlements; Debt Markets;

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Cited by:
  1. 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.
  2. World Bank, 2011. "Migration and Economic Development in Kosovo," World Bank Other Operational Studies 12868, The World Bank.
  3. Jaan Masso & Raul Eamets & Pille Mõtsmees, 2013. "The Effect Of Migration Experience On Occupational Mobility In Estonia," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 92, Faculty of Economics and Business Administration, University of Tartu (Estonia).
  4. Jaan Masso & Raul Eamets & Pille Mõtsmees, 2013. "The Effect of Temporary Migration Experience on Occupational Mobility in Estonia," CESifo Working Paper Series 4322, CESifo Group Munich.
  5. Piracha, Matloob & Vadean, Florin, 2010. "Return Migration and Occupational Choice: Evidence from Albania," World Development, Elsevier, vol. 38(8), pages 1141-1155, August.
  6. World Bank, 2010. "Albania - The New Growth Agenda : A Country Economic Memorandum," World Bank Other Operational Studies 2935, The World Bank.
  7. Deininger, Klaus & Savastano, Sara & Carletto, Calogero, 2012. "Land Fragmentation, Cropland Abandonment, and Land Market Operation in Albania," World Development, Elsevier, vol. 40(10), pages 2108-2122.
  8. 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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