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Human Capital and Unemployment in Transition Economies: The Case of Kosova


  • Avdullah Hoti

    (University of Prishtina, Faculty of Economy, Kosova)


In this paper we explore the issues of human capita in Kosova, a country which is characterised by high unemployment and large-scale emigration. Using data from the Riinvest Labour Force and Household Survey (December 2002), we estimate the probability of being unemployed for those who are of working age, are active in the labour force and reside in Kosova. Apart from this, we estimate the probability of emigrating for those of working age. There seems to be some systematic patterns: (i) those who are unemployed are not randomly selected from the labour force; (ii) those who emigrate are not randomly selected from working age population. The empirical results show that the individuals residing in rural areas face higher probability of being unemployed. Consequently, they tend to emigrate more compared to those residing in urban areas. Second, males and married people face lower probability of being unemployed. But they also tend to emigrate more compared to their respective counterparts. Third, although the more educated individuals face lower probability of being unemployed in Kosova, they tend to emigrate more than less educated individuals. These research findings might be used for developing policy proposals.

Suggested Citation

  • Avdullah Hoti, 2004. "Human Capital and Unemployment in Transition Economies: The Case of Kosova," Labor and Demography 0412007, EconWPA.
  • Handle: RePEc:wpa:wuwpla:0412007
    Note: Type of Document - doc; pages: 20

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    References listed on IDEAS

    1. Nauro F. Campos & Dean Jolliffe, 2002. "After, Before and During: Returns to Education in the Hungarian Transition," William Davidson Institute Working Papers Series 475, William Davidson Institute at the University of Michigan.
    2. Richard Blundell & Lorraine Dearden & Costas Meghir & Barbara Sianesi, 1999. "Human capital investment: the returns from education and training to the individual, the firm and the economy," Fiscal Studies, Institute for Fiscal Studies, vol. 20(1), pages 1-23, March.
    3. Burda, Michael C, 1992. "Unemployment, Labour Market Institutions and Structural Change in Eastern Europe," CEPR Discussion Papers 746, C.E.P.R. Discussion Papers.
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    More about this item


    Transition; human capital; unemployment; emigration; Kosova;

    JEL classification:

    • J - Labor and Demographic Economics

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