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The Determinants of Actual Migration and the Role of Wages and Unemployment in Albania: an Empirical Analysis

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  • Cristina Cattaneo

Abstract

The paper explores the determinants of internal migration in Albania, adopting the Harris-Todaro approach to migration: an internal migration function is estimated using district wage and unemployment rate differentials. The aggregate level wages and unemployment, included in the migration equation, are retrieved from a first stage wage and unemployment equations, estimated controlling for personal characteristics. Moreover, in order to test the predictions of the human capital model of migration, the difference between migrants and non-migrants is emphasized in the estimation. The data source is the "Living Standard Measurement Survey for Albania" (2002), undertaken by the national Institute of Statistics and the World Bank jointly. The results reveal that both wage and unemployment differentials are important determinants of the propensity to migrate in Albania. This conclusion is further emphasized by noting that migrants gain substantially in terms of higher returns to individual characteristics after emigration.

Suggested Citation

  • Cristina Cattaneo, 2008. "The Determinants of Actual Migration and the Role of Wages and Unemployment in Albania: an Empirical Analysis," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 5(1), pages 3-32, June.
    • Handle: RePEc:liu:liucej:v:5:y:2008:i:1:p:3-32
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    References listed on IDEAS

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    1. Mayda, Anna Maria, 2005. "International Migration: A Panel Data Analysis of Economic and Non-Economic Determinants," IZA Discussion Papers 1590, Institute for the Study of Labor (IZA).
    2. Yuri Andrienko & Sergei Guriev, 2004. "Determinants of interregional mobility in Russia," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 12(1), pages 1-27, March.
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    Cited by:

    1. Hagen-Zanker, Jessica, 2010. "Modest expectations: Causes and effects of migration on migrant households in source countries," MPRA Paper 29507, University Library of Munich, Germany.
    2. A. Daniela Cristina, 2008. "What Sways the Decision to Migrate? An Empirical Analysis of the Argentinean Case," Revista de Economía y Estadística, Universidad Nacional de Córdoba, Facultad de Ciencias Económicas, Instituto de Economía y Finanzas, vol. 0(1), pages 7-30, January.

    More about this item

    Keywords

    Internal Migration ; Wage ; Unemployment ; Transitional Economy;

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • P2 - Economic Systems - - Socialist Systems and Transition Economies

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