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Determinants of Migrants’ Earnings and Remittances: Evidence from Kosovo

Author

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  • Sokol Havolli

    () (Central Bank of the Republic of Kosovo (CBK), Directorate of Economic Analysis)

Abstract

This paper is an attempt to find the main determinants of migrants’ earnings and analyze what makes migrants remit money to their home countries. We use the dataset on migrants compiled by the Riinvest Institute2 in 2006. Ordinary least squares (OLS) and interval regression methods are used to estimate the migrants’ earnings model, while for the remittances model we use OLS and Tobit estimation methods. The results suggest, inter alia, that the returns to education are positive for migrants; also, migrants in countries with higher per capita GDP have higher family earnings. Among the most important determinants of remittances are migrants’ investments in their home countries, migrants’ perceptions of the business environment, migrants’ earnings, gender and the duration of migration. This paper tries to fill the gap in the literature, especially for the case of Kosovo, by exploring what determines the earnings of migrants and what makes migrants remit part of these earnings.

Suggested Citation

  • Sokol Havolli, 2011. "Determinants of Migrants’ Earnings and Remittances: Evidence from Kosovo," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue 1, pages 90-99.
  • Handle: RePEc:onb:oenbfi:y:2011:i:1:b:5
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    File URL: https://www.oenb.at/dam/jcr:2df4a7a2-d05c-4ac5-8a3b-ac842861ab39/feei_2011_q1_studies_05_tcm16-224907.pdf
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    Cited by:

    1. Francesco Pastore & Sarosh Sattar & Erwin Tiongson, 2013. "Gender differences in earnings and labor supply in early career: evidence from Kosovo’s school-to-work transition survey," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-34, December.
    2. Judith Möllers & Wiebke Meyer, 2014. "The effects of migration on poverty and inequality in rural Kosovo," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-18, December.
    3. Möllers, Judith & Meyer, Wiebke & Xhema, Sherif & Buchenrieder, Gertrud, 2013. "A socio-economic picture of Kosovar migrants and their origin farm households
      [Sozioökonomische Einsichten in kosovarische Migrantenhaushalte in Deutschland und in ihre ländlichen Ursprungshaushalt
      ," IAMO Discussion Papers 140, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).

    More about this item

    Keywords

    Remittances; migration; personal income;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances

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