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Return Migration and Occupational Choice

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  • Matloob Piracha

    ()

  • Florin Vadean

    ()

Abstract

This paper explores the impact of return migration on the Albanian economy by analysing the occupational choice of return migrants while explicitly differentiating between self-employment as either own account work or entrepreneurship. After taking into account the possible sample selection into return migration, we find that the own account workers have characteristics closer to non-participants in the labour market (i.e. lower education levels), while entrepreneurship is positively related to schooling, foreign language proficiency and savings accumulated abroad. Furthermore, compared to having not migrated, return migrants are significantly more likely not to participate in the labour market or to be entrepreneurs. However, after a one year re-integration period, the effect on non participation vanishes and that on entrepreneurship becomes stronger. As for non-migrants, the migration experience would have increased their probability to be entrepreneurs showing the positive impact of migration on job creating activities in Albania.

Suggested Citation

  • Matloob Piracha & Florin Vadean, 2009. "Return Migration and Occupational Choice," Studies in Economics 0905, School of Economics, University of Kent.
  • Handle: RePEc:ukc:ukcedp:0905
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    References listed on IDEAS

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    1. Ilahi, Nadeem, 1999. "Return Migration and Occupational Change," Review of Development Economics, Wiley Blackwell, vol. 3(2), pages 170-186, June.
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    7. Augustin Coulon & Matloob Piracha, 2005. "Self-selection and the performance of return migrants: the source country perspective," Journal of Population Economics, Springer;European Society for Population Economics, vol. 18(4), pages 779-807, November.
    8. Dustmann, Christian & Kirchkamp, Oliver, 2002. "The optimal migration duration and activity choice after re-migration," Journal of Development Economics, Elsevier, vol. 67(2), pages 351-372, April.
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    13. Zissimopoulos, Julie M. & Karoly, Lynn A., 2007. "Transitions to self-employment at older ages: The role of wealth, health, health insurance and other factors," Labour Economics, Elsevier, vol. 14(2), pages 269-295, April.
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    17. Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-142, March.
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    Citations

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    Cited by:

    1. J. William Ambrosini & Karin Mayr & Giovanni Peri & Dragos Radu, 2011. "The Selection of Migrants and Returnees: Evidence from Romania and Implications," NBER Working Papers 16912, National Bureau of Economic Research, Inc.
    2. Mahuteau, Stéphane & Piracha, Matloob & Tani, Massimiliano, 2010. "Selection Policy and Immigrants' Remittance Behaviour," IZA Discussion Papers 4874, Institute for the Study of Labor (IZA).
    3. Piracha, Matloob & Randazzo, Teresa & Vadean, Florin, 2013. "Remittances and Occupational Outcomes of the Household Members Left-Behind," IZA Discussion Papers 7582, Institute for the Study of Labor (IZA).
    4. Bertoli, Simone & Marchetta, Francesca, 2015. "Bringing It All Back Home – Return Migration and Fertility Choices," World Development, Elsevier, vol. 65(C), pages 27-40.
    5. Florin P. Vadean & Matloob Piracha, 2009. "Circular Migration or Permanent Return: What Determines Different Forms of Migration?," Studies in Economics 0912, School of Economics, University of Kent.
    6. Marchetta, Francesca, 2012. "Return Migration and the Survival of Entrepreneurial Activities in Egypt," World Development, Elsevier, vol. 40(10), pages 1999-2013.
    7. Artjoms Ivlevs & Roswitha M. King, "undated". "Kosovo - Winning Its Independence but Losing Its People? Recent Evidence on Emigration Intentions," Discussion Papers 09/17, University of Nottingham, GEP.
    8. Ambrosini, J. William & Mayr, Karin & Peri, Giovanni & Radu, Dragos, 2012. "The Selection of Migrants and Returnees in Romania: Evidence and Long-Run Implications," IZA Discussion Papers 6664, Institute for the Study of Labor (IZA).
    9. repec:eme:rleczz:s0147-9121(2013)0000037007 is not listed on IDEAS
    10. Katarzyna Budnik, 2011. "Temporary migration in theories of international mobility of labour," Bank i Kredyt, Narodowy Bank Polski, vol. 42(6), pages 7-48.
    11. Corrado Giulietti & Jackline Wahba & Klaus F. Zimmermann, 2013. "Entrepreneurship of the Left-Behind," Research in Labor Economics,in: Labor Market Issues in China, volume 37, pages 65-92 Emerald Publishing Ltd.
    12. Borodak, Daniela & Piracha, Matloob, 2013. "Who Moves and For How Long: Determinants of Different Forms of Migration," IZA Discussion Papers 7388, Institute for the Study of Labor (IZA).
    13. Kupets Olga, 2011. "Brain Gain or Brain Waste? The Performance of Return Labor Migrants in the Ukrainian Labor Market," EERC Working Paper Series 11/06e, EERC Research Network, Russia and CIS.

    More about this item

    Keywords

    Occupational Choice; Return Migration; Sample Selection;

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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