Abstract

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-à-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. Since such impact is likely to depend on differences in earning potentials and opportunities for skill acquisition across destination countries, we explore the heterogeneity of impact by host country. The results indicate that the positive effect of past migration experience on upward occupational mobility is driven by past migration experience in Italy and countries further afield, while past migration experience in Greece does not exert any significant impact on mobility outcomes.

Highlights

  • The relationship between international migration and human capital formation can be analyzed from a number of different angles

  • Using a unique dataset that contained information on individual migration and employment histories, this study estimates the impact of international migration experience on occupational mobility of return migrants vis a vis non-migrants, and contributes to the scant literature that has attempted to analyze labor market returns to past migration experience

  • After controlling for the non-random nature of international migration and return, we find that past migration experience exerts a positive and statistically significant impact on the likelihood of upward occupational mobility

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Summary

Introduction

The relationship between international migration and human capital formation can be analyzed from a number of different angles. Analyses may concern the migrants or household members that are left behind, or can differentiate the impact of different types of migration, such as permanent, circular or temporary movements, to different destinations. Much more emphasis has been given in the Albanian migration discourse to assessing the impact of current migration of former household members on outcomes concerning members of source households left behind. Many Albanian households perceived international migration, whether temporary or permanent, as an effective strategy for improving their livelihoods in the face of widespread unemployment and persistent poverty at home. Out-migration, mostly to Greece and Italy, was facilitated by Albania’s geographic location and the appeal of western affluence transmitted via media outlets

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