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Job creation and temporary emigration: the Albanian experience1

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  • Ahmet Mancellari
  • Harry Papapanagos
  • Peter Sanfey

Abstract

This paper focuses on job flows and unemployment in Albania during the transition from a closed, communist system to an open, free‐market economy, and examines the role of emigration in the restructuring of the country. Our theoretical model indicates that in Albania, temporary emigration may have a significant positive effect on hiring in the private sector, reducing unemployment. Using sectoral data on employment, we illustrate the importance of emigration as an alternative for the Albanian labour force, and we measure the extent to which job ‘destruction’ in some sectors of the economy has been compensated for by job ‘creation’ in others. On these grounds, we compare the progress of Albania with other former socialist countries in Europe.

Suggested Citation

  • Ahmet Mancellari & Harry Papapanagos & Peter Sanfey, 1996. "Job creation and temporary emigration: the Albanian experience1," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 4(2), pages 471-490, October.
  • Handle: RePEc:bla:etrans:v:4:y:1996:i:2:p:471-490
    DOI: 10.1111/j.1468-0351.1996.tb00184.x
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    File URL: https://doi.org/10.1111/j.1468-0351.1996.tb00184.x
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    1. Layard, Richard & Nickell, Stephen & Jackman, Richard, 2005. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780199279173.
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    Cited by:

    1. James Korovilas, 1999. "The Albanian Economy in Transition: The Role of Remittances and Pyramid Investment Schemes," Post-Communist Economies, Taylor & Francis Journals, vol. 11(3), pages 399-415.
    2. Peter Sanfey & Harry Papapanagos, 2001. "Intention to emigrate in transition countries: the case of Albania," Journal of Population Economics, Springer;European Society for Population Economics, vol. 14(3), pages 491-504.
    3. Dhori Kule & Ahmet Mançellari & Harry Papapanagos & Stefan Qirici & Peter Sanfey, 2000. "The Causes and Consequences of Albanian Emigration during Transition: Evidence from Micro Data," Studies in Economics 0004, School of Economics, University of Kent.
    4. Muco, Marta & Papapanagos, Harry & Sanfey, Peter, 1999. "The Determinants of Official and Free-Market Exchange Rates in Albania during Transition," Journal of Comparative Economics, Elsevier, vol. 27(3), pages 534-552, September.
    5. Sulo Haderi & Harry Papapanagos & Peter Sanfey & Mirela Talka, 1999. "Inflation and Stabilisation in Albania," Post-Communist Economies, Taylor & Francis Journals, vol. 11(1), pages 127-141.
    6. Darko Hajdukovic & Iraj Hashi, 2005. "Determinants of industrial restructuring in the pre-accession transition economies: the case of Czech Republic, Hungary and Poland," IWE Working Papers 160, Institute for World Economics - Centre for Economic and Regional Studies- Hungarian Academy of Sciences.
    7. Zsoka Koczan, 2016. "Remittances during crises," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 24(3), pages 507-533, July.

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