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Welcome Home in a Crisis: Effects of Return Migration on the Non-migrants' Wages and Employment

Author

Listed:
  • Ljubica Nedelkoska

    (Center for International Development at Harvard University)

  • Ricardo Hausmann

    (Harvard's Growth Lab)

Abstract
The recent economic depression in Greece hit the population of Albanian migrants in Greece particularly hard, spurring a wave of return migration which increased the Albanian labor force by 5 percent in less than four years, between 2011 and 2014. We study how this return migration affected the employment chances and earnings of Albanians who never migrated. We find positive effects on the wages of low-skilled non-migrants and overall positive effects on employment. The gains partially offset the sharp drop in remittances in the observed period. An important part of the employment gains are concentrated in the agricultural sector, where most return migrants engage in self-employment and entrepreneurship. Businesses run by return migrants seem to pull Albanians from non-participation, unemployment and subsistence agriculture into commercial agriculture.

Suggested Citation

  • Ljubica Nedelkoska & Ricardo Hausmann, 2017. "Welcome Home in a Crisis: Effects of Return Migration on the Non-migrants' Wages and Employment," Growth Lab Working Papers 90, Harvard's Growth Lab.
    • Handle: RePEc:glh:wpfacu:90
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    File URL: http://growthlab.cid.harvard.edu/files/growthlab/files/return_migration_cidwp_330.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Return migration; wages and employment of non-migrants;

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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