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Moving up the ladder ? the impact of migration experience on occupational mobility in Albania

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  • Carletto, Calogero
  • Kilic, Talip

Abstract

The contribution of return migrants to economic development in source countries can be significant. Overseas savings of returnees may lead to improvements in household welfare and provide liquidity for investments in the face of credit market failures. Labor market experience and skills acquired abroad may also lead migrants to find occupations higher in the skill and remuneration spectrum upon return. This study uses the 2005 Albanian Living Standards Measurement Study Survey and estimates the impact of international migration experience on the occupational mobility of return migrants vis a vis working-age Albanian residents that never migrated. Controlling for the non-random nature of international migration and return, the results show that past migration experience increases the likelihood of upward occupational mobility. Exploring the heterogeneity of impact by host country indicates that the positive effect of past migration experience on upward occupational mobility is driven by past migration experience in Italy and countries further a field, while past migration experience in Greece does not exert any significant impact on mobility outcomes. The results, which are consistent across different sample specifications and outcome variables measuring occupational mobility, hint at the link between migration and human/financial capital formation among migrants and foster optimism concerning the positive effect of return migration on economic development. This insight is particularly important since remittances from permanent migrants, which have fueled the impressive growth performance of the country in the recent era, may taper off in the medium to long term with the decline in out-migration and growing global economic woes.

Suggested Citation

  • Carletto, Calogero & Kilic, Talip, 2009. "Moving up the ladder ? the impact of migration experience on occupational mobility in Albania," Policy Research Working Paper Series 4908, The World Bank.
  • Handle: RePEc:wbk:wbrwps:4908
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    Cited by:

    1. Calogero Carletto & Jennica Larrison & Çaglar Özden, 2014. "Informing migration policies: a data primer," Chapters,in: International Handbook on Migration and Economic Development, chapter 2, pages 9-41 Edward Elgar Publishing.
    2. Jaan Masso & Raul Eamets & Pille Mõtsmees, 2013. "The Effect Of Migration Experience On Occupational Mobility In Estonia," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 92, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    3. Mendola, Mariapia & Carletto, Calogero, 2012. "Migration and gender differences in the home labour market: Evidence from Albania," Labour Economics, Elsevier, vol. 19(6), pages 870-880.
    4. Jackline Wahba, 2014. "Return migration and economic development," Chapters,in: International Handbook on Migration and Economic Development, chapter 12, pages 327-349 Edward Elgar Publishing.
    5. Nelly El-Mallakh & Jackline Wahba, 2016. "Upward or Downward: Occupational Mobility and Return Migration," Working Papers 1010, Economic Research Forum, revised Jun 2016.
    6. Jackline Wahba & Nelly El-Mallakh, 2017. "Return Migrants and the Wage Premium: Does the Legal Status of Migrants Matter?," Working Papers 1133, Economic Research Forum, revised 08 2017.
    7. World Bank, 2010. "Albania - The New Growth Agenda : A Country Economic Memorandum," World Bank Other Operational Studies 2935, The World Bank.
    8. Azzarri, Carlo & Carletto, Calogero, 2009. "Modeling migration dynamics in Albania : a hazard function approach," Policy Research Working Paper Series 4945, The World Bank.
    9. World Bank, 2011. "Migration and Economic Development in Kosovo," World Bank Other Operational Studies 12868, The World Bank.
    10. Jaan Masso & Raul Eamets & Pille Mõtsmees, 2013. "The Effect of Temporary Migration Experience on Occupational Mobility in Estonia," CESifo Working Paper Series 4322, CESifo Group Munich.
    11. Nandi, Tushar Kanti & Kar, Saibal, 2015. "Short-term Migration and Intergenerational Persistence of Industry in Rural India," IZA Discussion Papers 9283, Institute for the Study of Labor (IZA).
    12. Deininger, Klaus & Savastano, Sara & Carletto, Calogero, 2012. "Land Fragmentation, Cropland Abandonment, and Land Market Operation in Albania," World Development, Elsevier, vol. 40(10), pages 2108-2122.
    13. Piracha, Matloob & Vadean, Florin, 2010. "Return Migration and Occupational Choice: Evidence from Albania," World Development, Elsevier, vol. 38(8), pages 1141-1155, August.
    14. Tushar Agrawal & S .Chandrasekhar, 2015. "Short term migrants in India: Characteristics, wages and work transition," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2015-007, Indira Gandhi Institute of Development Research, Mumbai, India.
    15. World Bank, 2013. "From Double-Dip Recession to Fragile Recovery," World Bank Other Operational Studies 16559, The World Bank.

    More about this item

    Keywords

    Population Policies; Labor Markets; Voluntary and Involuntary Resettlement; Human Migrations&Resettlements; Debt Markets;

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