The Nexus of Remittances and Migration: Impacts on Labour Market Dynamics through Bivariate Probit Anal-ysis in Kosovo

• Autorzy: Genc Zhushi , Driton Qehaja
• Języki publikacji: EN

Abstrakty

EN

is study investigates the labour market dynamics in Kosovo, a post-war and transitional economy, which high migration rates and substantial remittance inflows have significantly influenced. Despite the global attention paid to migration and remittances, there is a conspicuous gap in understanding their joint effects on labour markets, particularly in contexts like that of Kosovo. The research aims to analyse the interplay between migration, remittances, and labour force participation in Kosovo, and to identify how these factors collectively affect labour market dynamics across different demographic groups. Utilising 2017 data from the Millennium Challenge Corporation survey, this study employs bivariate probit techniques to address endogeneity issues in mi-gration and remittance patterns. It provides a nuanced analysis of their impacts on labour force participation. The findings reveal that remittances can disincentivise labour force participation, contributing to a lower labour supply. This effect is more pronounced among certain demographic groups, such as women and the youth. Con-versely, migration strategies have a mixed impact on labour force participation. The study suggests that remittances and migration have significant but complex effects on labour market dynamics in Kosovo. It emphasises that remittances, while bolstering household incomes, may inadvertently dampen labour force participation. This effect, coupled with the nuanced impacts of migration, suggests a need for policies that en-courage the productive investment of remittances in the local economy and support labour market re-entry strategies for return migrants.(original abstract)

Słowa kluczowe

EN

Economic development; Migration; Labour force

PL

Rozwój gospodarczy; Migracja; Siła robocza

• Czasopismo: Forum Scientiae Oeconomia
• Rocznik: 2024
• Tom: 12
• Numer: nr 1
• Strony: 96--117

Twórcy

autor

Genc Zhushi

• Faculty of Economics, Economics, Pristina, Kosovo

autor

Driton Qehaja

• Faculty of Economics, Economics, Pristina, Kosovo

Bibliografia

• 1.Acosta, P. (2006). Labor supply, school attendance, and remittances from international migration: the case of El Salvador. In World Bank Policy Research Working Paper 3903.
• 2.AAdams Jr, R. H. (2011). Evaluating the economic impact of international remittances on devel-oping countries using household surveys: A literature review.Journal of Development Stud-ies,47(6), 809-828.
• 3.Adhikari, R., Jampaklay, A., & Chamratrithirong, A. (2011). Impact of children's migration on health and health care-seeking behavior of elderly left behind.BMC public health,11, 1-8. https://doi.org/10.1186/1471-2458-11-143
• 4.Agasty, M. P., & Patra, R. N. (2014). Migration of labour and left-behind women: A case study of rural Odisha. American International Journal of Research in Humanities, Arts and Social Sciences, 7(1), 28-33.
• 5.Altonji, J. G., Elder, T. E., & Taber, C. R. (2005). An evaluation of instrumental variable strategies for estimating the effects of catholic schooling.Journal of Human resources,40(4), 791-821. https://doi.org/10.3368/jhr.xl.4.791
• 6.AAndruske, C. L., & O'Connor, D. (2020). Family care across diverse cultures: Re-envisioning us-ing a transnational lens.Journal of Aging Studies,55, 100892.https://doi.org/10.1016/j.jag-ing.2020.100892
• 7.Ashford, J. ., & R.R, S. (1970). Multi-Variate Probit Analysis. Biometrics, 26(3), 535-546.
• 8.Asiedu, E., & Chimbar, N. (2020). Impact of remittances on male and female labor force participa-tion patterns in Africa: Quasi-experimental evidence from Ghana.Review of Development Econom-ics,24(3), 1009-1026. https://doi.org/10.1111/rode.12668
• 9.Bajra, U. Q. (2021). The interactive effects of remittances on economic growth and inequality in Western Balkan countries.Journal of Business Economics and Management,22(3), 757-775.. https://doi.org/10.3846/jbem.2021.14587
• 10.Baškot, B. (2020). Capital flows impact on labor market: how do FDIs and remittances effect youth employment in Bosnia and Herzegovina?.Economic research-Ekonomska istraživanja,33(1), 2633-2647.https://doi.org/10.1080/1331677X.2020.1761418
• 11.Behar, A., & Mok, J. (2019). Does public-sector employment fully crowd out private-sector em-ployment?.Review of Development Economics,23(4), 1891-1925. https://doi.org/10.1111/rode.12613
• 12.Bennett, R., Clifford, D., & Falkingham, J. (2013). Household members' migration and the edu-cation of children 'left ehind': Empirical findings from Tajikistan and reflections for research prac-tice.Population, Space and Place,19(1), 1-14. https://doi.org/10.1002/psp.1698
• 13.BBerger, A. (2022). Development as non-migration? Examining normative and policy coherence in EU external action on migration and development.Development Policy Review,40, e12589. https://doi.org/10.1111/dpr.12589
• 14.Boese, M., & Moran, A. (2021). The regional migration-development nexus in Australia: what migration? Whose development?.Frontiers in sociology,6, 602487. https://doi.org/10.3389/fsoc.2021.602487
• 15.Brainerd, E. (2000). Women in transition: Changes in gender wage differentials in Eastern Europe and the former Soviet Union.ILR Review,54(1), 138-162. https://doi.org/10.1177/001979390005400108
• 16.Central Bank of Kosovo. (2021). Annual Report 2021. In AIMS Microbiology. https://bqk-kos.org/wp-content/uploads/2022/07/CBK_AR_2021.pdf
• 17.Chami, R., Ernst, E., Fullenkamp, C., & Oeking, A. (2018).Are Remittances Good for Labor Mar-kets in LICs, MICs and Fragile States?. International Monetary Fund, No. 2018/102.https://doi.org/10.2139/ssrn.3221121
• 18.Du, Y., Park, A., & Wang, S. (2005). Migration and rural poverty in China.Journal of comparative economics,33(4), 688-709.https://doi.org/10.1016/j.jce.2005.09.001
• 19.Eurostat. (2019). Statistics on migration, residence permits, citizenship and asylum for the en-largement countries 2020 edition the enlargement process in the EU. https://ec.eu-ropa.eu/info/policies/eu-enlargement_en.
• 20.Galí, J. (2010). Monetary policy and unemployment. National bureau of economic research, 9(1), 76-99. https://www.nber.org/system/files/working_papers/w15871/w15871.pdf
• 21.Gapen, M. T., Chami, R., Montiel, P., Barajas, A., & Fullenkamp, C. (2009). Do Workers' Remit-tances Promote Economic Growth? IMF Working Papers. https://doi.org/10.5089/9781451873009.001
• 22.Ghimire, S., & Kapri, K. P. (2020). Does the source of remittance matter? Differentiated effects of earned and unearned remittances on agricultural productivity.Economies,8(1), 8. https://doi.org/10.3390/economies8010008
• 23.Gray, C. L. (2009). Rural out-migration and smallholder agriculture in the southern Ecuadorian Andes.Population and Environment,30, 193-217. https://doi.org/10.1007/s11111-009-0081-5
• 24.Hanson, S., & Pratt, G. (1991). Job search and the occupational segregation of women.Annals of the Association of American geographers,81(2), 229-253.https://doi.org/10.1111/j.1467-8306.1991.tb01688.x
• 25.Hollenbach, F. M., Montgomery, J. M., & Crespo-Tenorio, A. (2019). Bayesian versus maximum likelihood estimation of treatment effects in bivariate probit instrumental variable models.Political Science Research and Methods,7(3), 651-659. https://doi.org/10.1017/psrm.2018.15
• 26.Hossain, M. S., & Sunmoni, A. (2022). Remittances and Household Investment Decisions: Evidence from sub-Saharan Africa.IZA Journal of Development and Migration,13(1). https://doi.org/10.2478/izajodm-2022-0004
• 27.International Monetary Fund. (2022). Republic of Kosovo 2021 Article IV consultation-press release and staffreporT. In IMF StaffCountry Reports: Vol. No.22/5. https://doi.org/10.5089/9798400231001.002
• 28.IOM. (2022). Flow monitoring surveys' report Kosovo, Vol. 1244. https://dtm.iom.int/sites/g/files/tmzbdl1461/files/reports/DTM_Kosovo_FMS report_2022.pdf
• 29.Jena, F. (2018). Migrant remittances and physical investment purchases: Evidence from Kenyan households.e Journal of Development Studies,54(2), 312-326.. https://doi.org/10.1080/00220388.2017.1288219
• 30.Jushi, E., Hysa, E., Cela, A., Panait, M., & Voica, M. C. (2021). Financing growth through remit-tances and foreign direct investment: Evidences from Balkan Countries.Journal of Risk and Finan-cial Management,14(3), 117.https://doi.org/10.3390/jrfm14030117
• 31.Kahanec, M., Zaiceva, A., & Zimmermann, K. F. (2009). Lessons from migration after EU en-largement. InEU labor markets after post-enlargement migration(pp. 3-45). Berlin, Heidelberg: Springer Berlin Heidelberg.https://doi.org/10.2139/ssrn.1423346
• 32.Kan, S., & Aytimur, R. E. (2019). Labor force participation of women left behind in Tajikistan.Ox-ford Development Studies,47(1), 1-28. https://doi.org/10.1080/13600818.2018.1484899
• 33.Kastrati, A., Navakazi, V., Abdyli, A., Sojeva, A., Uka, S., Tahiri, E., & Berisha, V. (2022). Popula-tion of Kosovo in 2021. https://ask.rks-gov.net/media/6873/vlersimi-i-popullesise-ne-kosove-2021-final.pdf
• 34.Kosovo Agency of Statistics. (2022). Statistical Repertoire of Enterprises (Issue January). ask.rks-gov.net/media/7398/statistical-repertoire-of-economic-enterprises-in-kosovo-q4-2022.pdf
• 35.Kosovo Agency of Statistics (KAS). (2021). Labour Force Survey (LFS) in Kosovo in 2021. https://ask.rks-gov.net/en/kosovo-agency-of-statistics/add-news/labour-force-survey-lfs-in-ko-sovo-2021
• 36.Li, C., Poskitt, D. S., & Zhao, X. (2019). The bivariate probit model, maximum likelihood estima-tion, pseudo true parameters and partial identification. Journal of Econometrics, 209(1), 94-113. https://doi.org/10.1016/j.jeconom.2018.07.009
• 37.Lokshin, M., & Glinskaya, E. (2009). The effect of male migration on employment patterns of women in Nepal. World Bank Economic Review. https://doi.org/10.1093/wber/lhp011
• 38.Loxha, A. (2019). Do Remittances reduce poverty in Kosovo?-A counterfactual analysis.South East European Journal of Economics and Business,14(2), 117-132.https://doi.org/10.2478/jeb-2019-0018
• 39.Lu, Z. H., & Zuo, A. (2017). Child disability, welfare payments, marital status and mothers' labor supply: Evidence from Australia.Cogent Economics & Finance,5(1), 1339769.https://doi.org/10.1080/23322039.2017.1339769
• 40.Al Mamun, M., Sohag, K., Uddin, G. S., & Shahbaz, M. (2015). Remittance and domestic labor productivity: Evidence from remittance recipient countries.Economic Modelling,47, 207-218.https://doi.org/10.1016/j.econmod.2015.02.024
• 41.Miao, M., & Qamruzzaman, M. (2021). Dose remittances matter for openness and financial sta-bility: Evidence from least developed economies.Frontiers in psychology,12, 696600.https://doi.org/10.3389/fpsyg.2021.696600
• 42.Monfardini, C., & Radice, R. (2008). Testing exogeneity in the bivariate probit model: A Monte Carlo study.oxford Bulletin of Economics and Statistics,70(2), 271-282. https://doi.org/10.2139/ssrn.886506
• 43.Nwokoye, E. S., Igbanugo, C. I., & Dimnwobi, S. K. (2020). International migrant remittances and labour force participation in Nigeria.African Development Review,32(2), 125-137. https://doi.org/10.1111/1467-8268.12421
• 44.OECD. (2022). SME Policy Index: Western Balkans and Turkey 2016: Assessing the Implementa-tion of the Small Business Act for Europe. http://dx.doi.org/10.1787/9789264254473-en
• 45.Posso, A. (2012). Remittances and aggregate labor supply: evidence from sixty-six developing na-tions.The Developing Economies,50(1), 25-39. https://doi.org/10.1111/j.17
• 46-1049.2011.00153.x46.Pudryk, D., Kwilinski, A., Lyulyov, O., & Pimonenko, T. (2023, March). Towards Achieving Sus-tainable Development: Interactions between Migration and Education. InForum Scientiae Oecono-mia, Vol. 11, No. 1, 113-132. https://doi.org/10.23762/FSO_VOL11_NO1_6
• 47.Rahman, M. M., Ashraf, B. N., Zheng, C., & Begum, M. (2017). Impact of cost efficiency on bank capital and the cost of financial intermediation: Evidence from BRICS countries.International Jour-nal of Financial Studieshttps://doi.org/10.3390/ijfs5040032
• 48.Ravn, M. O., & Simonelli, S. (2007). Labor market dynamics and the business cycle: Structural evidence for the United States.The Scandinavian Journal of Economics,109(4), 743-777.https://doi.org/10.1111/j.1467-9442.2007.00520.x
• 49.Rozhkov, D., Koczan, Z., & Pinat, M. (2021). The Impact of International Migration on Inclusive Growth: A Review. IMF Working Papers. https://doi.org/10.5089/9781513571966.001
• 50.Seidu, A., Onel, G., & Moss, C. B. (2022). Do international remittances accelerate out-farm labor migration in developing countries? A dynamic panel time-series analysis.Journal of Agribusiness in Developing and Emerging Economieshttps://doi.org/10.1108/JADEE-05-2020-0097
• 51.Siddiqui, H., Gashi, A., Higgins, J., Dasgupta, B., & Pucilowski, M. (2018). Kosovo Labor Force and Time Use Study Research Report MCC Kosovo Labor Force and Time Use Study (Issue Feb-ruary). https://millenniumkosovo.org/wp-content/uploads/2018/11/MCC-Kosovo-Labor-Force-and-Time-Use-Study-Final-Research-Report-1.pdf
• 52.Stanley, D. (2015). Can international transfers be problematic? Honduran remittances and labor supply decisions.Contemporary Economic Policy,33(3), 550-570.https://doi.org/10.1111/coep.12092
• 53.Stuart, E. A. (2010). Matching methods for causal inference: A review and a look forward.Statis-tical science: a review journal of the Institute of Mathematical Statistics,25(1), 1.https://doi.org/10.1214/09-STS313
• 54.Tapsoba, T. A. (2022). Remittances and households' livelihood in the context of Covid-19: Evi-dence from Burkina Faso.Journal of International Development,34(4), 737-753.https://doi.org/10.1002/jid.3597
• 55.Taylor, J. E. (1992). Remittances and inequality reconsidered: Direct, indirect, and intertemporal effects.Journal of Policy modeling,14(2), 187-208.https://doi.org/10.1016/0161-8938(92)90008-Z
• 56.eodore, N., Blaauw, D., Schenck, C., Valenzuela Jr, A., Schoeman, C., & Meléndez, E. (2015). Day labor, informality and vulnerability in South Africa and the United States.International Jour-nal of Manpower,36(6), 807-823.https://doi.org/10.1108/IJM-01-2014-0036
• 57.Ullah, S., Akhtar, P., & Zaefarian, G. (2018). Dealing with endogeneity bias: The generalized method of moments (GMM) for panel data.Industrial Marketing Management,71, 69-78.https://doi.org/10.1016/j.indmarman.2017.11.010
• 58.World Bank. (2022a). Personal remittances, received (% of GDP) -Kosovo | Data. https://data.worldbank.org/indicator/BX.TRF.PWKR.DT.GD.ZS?locations=XK
• 59.World Bank. (2022b). Personal remittances, received (current US$) -Kosovo | Data. https://data.worldbank.org/indicator/BX.TRF.PWKR.CD.DT?locations=XK
• 60.World Bank. (2023). Kosovo Overview: Development news, research, data | World Bank. https://www.worldbank.org/en/country/kosovo/overview

Identyfikatory

DOI

10.23762/FSO_VOL12_NO1_5