Moving Up the Ladder? The Impact of Migration Experience on Occupational Mobility in Albania

The contribution of return migrants to economic development in source countries can be significant. Overseas savings of returnees may lead to improvements in household welfare and provide liquidity for investments in the face of credit market failures. Labor market experience and skills acquired abroad may also lead migrants to find occupations higher in the skill and remuneration spectrum upon return. 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 a 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. Exploring the heterogeneity of impact by host country indicates that the positive effect of past migration experience on upward occupational mobility is driven by past migration experience in Italy and countries further a field, while past migration experience in Greece does not exert any significant impact on mobility outcomes. The results, which are consistent across different sample specifications and outcome variables measuring occupational mobility, hint at the link between migration and human/financial capital formation among migrants and foster optimism concerning the positive effect of return migration on economic development. This insight is particularly important since remittances from permanent migrants, which have fueled the impressive growth performance of the country in the recent era, may taper off in the medium to long term with the decline in out-migration and growing global economic woes.

Saved in:
Bibliographic Details
Main Authors: Carletto, Calogero, Kilic, Talip
Language:English
Published: 2009-04-01
Subjects:ACCOUNTING, AGE CATEGORY, AGE GROUP, ASSET POSITION, ASSET POSITIONS, AVERAGE WAGE, BANK POLICY, BASIC NEEDS, BLUE COLLAR OCCUPATIONS, BRAIN DRAIN, BULLETIN, CAPITAL FORMATION, CAPITAL MARKET, CAPITAL REQUIREMENTS, CHECKS, CHILD HEALTH, CLERKS, COUNTRIES OF ORIGIN, COUNTRY OF DESTINATION, COUNTRY OF ORIGIN, CREDIT CONSTRAINTS, CREDIT MARKET, CROSS-SECTIONAL DATA, DEVELOPING COUNTRIES, DIASPORA, DUMMY VARIABLE, DUMMY VARIABLES, EARNING, ECONOMIC DEVELOPMENT, ECONOMIC STATUS, EDUCATIONAL ATTAINMENT, EMIGRATION, EMPLOYMENT HISTORIES, EMPLOYMENT OUTCOMES, EMPLOYMENT STATUS, ENABLING ENVIRONMENT, EQUIPMENT, EXPENDITURES, FAMILY REUNIFICATION, FARMS, FINANCIAL CAPITAL, FORMAL EDUCATION, GLOBALIZATION, HOME COUNTRIES, HOST COUNTRIES, HOST COUNTRY, HOUSEHOLD ASSETS, HOUSEHOLD CHARACTERISTICS, HOUSEHOLD CONSUMPTION, HOUSEHOLD ENTERPRISES, HUMAN CAPITAL, HUMAN RESOURCES, IMMIGRANT, IMMIGRATION, IMMIGRATION POLICY, IMPACT OF MIGRATION, INSTRUMENT, INTERNATIONAL BANK, INTERNATIONAL MIGRATION, INTERNATIONAL MIGRATION REVIEW, INTERNATIONAL ORGANIZATION FOR MIGRATION, INTERNATIONAL STANDARD, INVESTING, JOB OPPORTUNITIES, JOB TENURE, JOB TRAINING, JOBS, LABOR FORCE, LABOR FORCE PARTICIPATION, LABOR MARKET, LABOR MARKET EXPERIENCE, LABOR MARKET OUTCOMES, LABOR MOBILITY, LABOR SUPPLY, LAND OWNERSHIP, LEGAL STATUS, LEGISLATORS, LEVELS OF EDUCATION, LIQUIDITY, LIVING STANDARDS, MARKET FAILURES, MARKET RETURNS, MICRO-ENTERPRISES, MIGRANT, MIGRANT POPULATIONS, MIGRANT WORKERS, MIGRANTS, MIGRATION POLICY, MIGRATION PROCESS, MINORITY, OCCUPATION, OCCUPATIONAL MOBILITY, OCCUPATIONS, ON-THE-JOB TRAINING, PERMANENT MIGRATION, PERSISTENT POVERTY, POLICY BRIEF, POLICY RESEARCH, POLICY RESEARCH WORKING PAPER, POLITICAL ECONOMY, POTENTIAL CONTRIBUTION, POVERTY REDUCTION, PRIMARY EDUCATION, PRINCIPAL SOURCE, PROBIT REGRESSION, PROBIT REGRESSIONS, PRODUCTIVE INVESTMENTS, PROGRESS, REMIGRATION, REMITTANCES, RESPECT, RETURN, RETURN MIGRATION, RETURNEES, SHARE OF INVESTMENTS, SOCIAL CAPITAL, SOCIAL GROUP, SOCIAL STATUS, SPILLOVER, TECHNICAL ASSISTANCE, TEMPORARY MIGRATION, TOTAL EMPLOYMENT, TRANSITION ECONOMIES, TV, UNEMPLOYED, UNEMPLOYED INDIVIDUALS, UNEMPLOYMENT, URBAN AREAS, VOCATIONAL TRAINING, WAGE EMPLOYMENT, WAGE GAP, WAGE PREMIUM, WORK EXPERIENCE,
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090424091935
https://hdl.handle.net/10986/4102
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:The contribution of return migrants to economic development in source countries can be significant. Overseas savings of returnees may lead to improvements in household welfare and provide liquidity for investments in the face of credit market failures. Labor market experience and skills acquired abroad may also lead migrants to find occupations higher in the skill and remuneration spectrum upon return. 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 a 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. Exploring the heterogeneity of impact by host country indicates that the positive effect of past migration experience on upward occupational mobility is driven by past migration experience in Italy and countries further a field, while past migration experience in Greece does not exert any significant impact on mobility outcomes. The results, which are consistent across different sample specifications and outcome variables measuring occupational mobility, hint at the link between migration and human/financial capital formation among migrants and foster optimism concerning the positive effect of return migration on economic development. This insight is particularly important since remittances from permanent migrants, which have fueled the impressive growth performance of the country in the recent era, may taper off in the medium to long term with the decline in out-migration and growing global economic woes.