The Effect of International Migrant Remittances on Employment Patterns: Evidence from Kosovo
The Effect of International Migrant Remittances on Employment Patterns: Evidence from Kosovo

Summary/Abstract: This study examines the effect of international migrant remittances on the employment patterns of individuals receiving them. To do that we use a nationally representative labor force survey conducted in Kosovo by Millennium Challenge Corporation. To address endogeneity issues, we employ propensity score-weighted Probit models by weighting every individual in the sample by the probability of receiving remittances based on their observed characteristics. The findings suggest that remittances decrease the employment probability of individuals who receive them, while at the same time increasing the probability of inactivity and being a family worker. The impacts are stronger for individuals from urban areas, workers over the age of 55, and individuals from non-Albanian ethnicities.

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