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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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Abstract

The paper explores the determinants of internal migration in Albania, adopting a neoclassical 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 determinats 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.

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  • Cristina Cattaneo, 2006. "The Determinants of Actual Migration and the Role of Wages and Unemployment in Albania: an Empirical Analysis," LIUC Papers in Economics 196, Cattaneo University (LIUC).
    • Handle: RePEc:liu:liucec:196
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    1. Yasir Khan & Taimoor Hassan & Wang Ming Yi & Rahimullah Gulzar, 2018. "A Comparative Analysis Based on Economic Factors of Students Emigration from South Asia," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 5(2), pages 201-208.
    2. Ahmad Nawaz & Muhammad Shakeel & Sadia Mushtaq, 2022. "Unemployment, Governance And Migration Flows In Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 11(2), pages 31-43, June.
    3. 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.
    4. Horie, Norio & Iwasaki, Ichiro & 岩﨑, 一郎, 2022. "Returns to Education in European Emerging Markets: A Meta-Analytic Review," RRC Working Paper Series 95, Russian Research Center, Institute of Economic Research, Hitotsubashi University.
    5. Ҫurçija Mario & Bejleri Emirjeta, 2020. "Urban Population Growth and Job Opportunities: The Case of Albania," Naše gospodarstvo/Our economy, Sciendo, vol. 66(4), pages 28-39, December.
    6. 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. 46(1), pages 7-30, Junio.

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    More about this item

    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 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies

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