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Return Migration and Occupational Choice

  • Matloob Piracha

    ()

  • Florin Vadean

    ()

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.

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File URL: ftp://ftp.ukc.ac.uk/pub/ejr/RePEc/ukc/ukcedp/0905.pdf
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Paper provided by School of Economics, University of Kent in its series Studies in Economics with number 0905.

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Date of creation: Mar 2009
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Handle: RePEc:ukc:ukcedp:0905
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School of Economics, University of Kent, Canterbury, Kent, CT2 7NP

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Web page: http://www.kent.ac.uk/economics/

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  1. Dustmann, Christian & Kirchkamp, Oliver, 2000. "The optimal migration duration and activity choice after re-migration," Papers 00-39, Sonderforschungsbreich 504.
  2. Ilahi, Nadeem, 1999. "Return Migration and Occupational Change," Review of Development Economics, Wiley Blackwell, vol. 3(2), pages 170-86, June.
  3. Dustmann, Christian, 2003. "Return migration, wage differentials, and the optimal migration duration," European Economic Review, Elsevier, vol. 47(2), pages 353-369, April.
  4. Blau, David M., 1986. "Self-employment, earnings, and mobility in Peninsular Malaysia," World Development, Elsevier, vol. 14(7), pages 839-852, July.
  5. Augustin De Coulon & Matloob Piracha, 2003. "Self-selection and the performance of return migrants: the source country perspective," LSE Research Online Documents on Economics 20040, London School of Economics and Political Science, LSE Library.
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  7. 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.
  8. Alice Mesnard, 2004. "Temporary migration and capital market imperfections," Oxford Economic Papers, Oxford University Press, vol. 56(2), pages 242-262, April.
  9. McCormick, Barry & Wahba, Jackline, 2001. "Overseas Work Experience, Savings and Entrepreneurship amongst Return Migrants to LDCs," Scottish Journal of Political Economy, Scottish Economic Society, vol. 48(2), pages 164-78, May.
  10. Djajic, Slobodan & Milbourne, Ross, 1988. "A general equilibrium model of guest-worker migration : The source-country perspective," Journal of International Economics, Elsevier, vol. 25(3-4), pages 335-351, November.
  11. Dustmann, Christian, 1997. "Return migration, uncertainty and precautionary savings," Journal of Development Economics, Elsevier, vol. 52(2), pages 295-316, April.
  12. Gourieroux, Christian & Monfort, Alain & Renault, Eric & Trognon, Alain, 1987. "Generalised residuals," Journal of Econometrics, Elsevier, vol. 34(1-2), pages 5-32.
  13. Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-42, March.
  14. Elida Cuka & Harry Papapanagos & Natasha Polo & Peter Sanfey, 2003. "Labor Market Developments in Albania: An Analytical Overview," Review of Development Economics, Wiley Blackwell, vol. 7(2), pages 217-227, 05.
  15. Borjas, George J, 1989. "Immigrant and Emigrant Earnings: A Longitudinal Study," Economic Inquiry, Western Economic Association International, vol. 27(1), pages 21-37, January.
  16. Hill, John K., 1987. "Immigrant decisions concerning duration of stay and migratory frequency," Journal of Development Economics, Elsevier, vol. 25(1), pages 221-234, February.
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