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Human Capital, Market Imperfections, Poverty, and Migration: Evidence from Albania

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  • Etleva Germenji
  • Johan Swinnen

Abstract

The most dramatic recent immigration in Europe is the influx of more than 700,000 Albanians, about a quarter of the total Albanian workforce, in the 1990s. The vast majority migrated illegally. This paper analyses the determinants of Albanian migration based on a unique representative survey of rural households. The study confirms that migrants are mostly young, male, and single. Regional variations in migration reflect a combination of cultural and economic factors, including migration costs. However, we find that migrants do not come from the poorest rural households. Moreover, education has a positive, albeit non-linear, effect on the likelihood of migration. Migration is negatively related with household access to alternative income sources and reduced financial constraints but positively related with the presence and household's access to migration networks. Policy implications are that aid programs and government initiatives to invest in rural infrastructure and rural education may have mixed effects on migration. A key policy target to reduce migration should be the creation of non-farm rural employment and rural households?access to finance.

Suggested Citation

  • Etleva Germenji & Johan Swinnen, 2005. "Human Capital, Market Imperfections, Poverty, and Migration: Evidence from Albania," LICOS Discussion Papers 15705, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    • Handle: RePEc:lic:licosd:15705
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    File URL: http://www.econ.kuleuven.be/licos/publications/dp/dp157.pdf
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    References listed on IDEAS

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    1. repec:elg:eebook:16167 is not listed on IDEAS
    2. Paul Winters & Alain de Janvry & Elisabeth Sadoulet, 2001. "Family and Community Networks in Mexico-U.S. Migration," Journal of Human Resources, University of Wisconsin Press, vol. 36(1), pages 159-184.
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    Cited by:

    1. Mariapia Mendola & Gero Carletto, 2008. "International migration and gender differentials in the home labor market: evidence from Albania," Working Papers 148, University of Milano-Bicocca, Department of Economics, revised Dec 2008.
    2. Calogero Carletto & Jennica Larrison & Çaglar Özden, 2014. "Informing migration policies: a data primer," Chapters, in: Robert E.B. Lucas (ed.), International Handbook on Migration and Economic Development, chapter 2, pages 9-41, Edward Elgar Publishing.
    3. Karen Macours & Johan Swinnen, 2006. "Rural Poverty in Transition Countries," LICOS Discussion Papers 16906, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    4. Meyer, Wiebke & Mollers, Judith & Buchenrieder, Gertrud, 2008. "Patterns and Determinants of International Migration in Northern Albania," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44406, European Association of Agricultural Economists.
    5. Zizi Goschin & Monica Roman & Aura Popa, 2011. "Determinants of Romanian International Migrants' Remittances," ERSA conference papers ersa11p1001, European Regional Science Association.
    6. Benjamin Davis & Gero Carletto & Paul Winters, 2010. "Migration, Transfers and Economic Decision Making among Agricultural Households: an Introduction," Journal of Development Studies, Taylor & Francis Journals, vol. 46(1), pages 1-13.
    7. Meyer, Wiebke, 2012. "Motives for remitting from Germany to Kosovo," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 69, number 69.
    8. Zizi GOSCHIN & Monica ROMAN, 2012. "Determinants of the remitting behaviour of Romanian emigrants in an economic crisis context," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 3, pages 87-103, December.
    9. Carlo Azzarri & Calogero Carletto & Benjamin Davis & Alberto Zazza, 2008. "Migration and Labour Choice in Albania," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 6(2), pages 169-196.
    10. Boris Najman & Raluca Prelipceanu, 2012. "Labour Migration and Institutional Quality: the Case of Romania," Erudite Working Paper 2012-13, Erudite.

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    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • P20 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - General

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