Return Migration and Occupational Choice

36 Pages Posted: 19 Jan 2009

See all articles by Matloob Piracha

Matloob Piracha

University of Kent - Department of Economics; IZA Institute of Labor Economics

Florin Vadean

PSSRU, University of Kent

Abstract

This paper explores the impact of return migration on the Albanian economy by analysing the occupational choice of return migrants while explicitly differentiating between self-employment as either own account work or entrepreneurship. After taking into account the possible sample selection into return migration, we find that the own account workers have characteristics closer to non-participants in the labour market (i.e. lower education levels), while entrepreneurship is positively related to schooling, foreign language proficiency and savings accumulated abroad. Furthermore, compared to having not migrated, return migrants are significantly more likely not to participate in the labour market or to be entrepreneurs. However, after a one year re-integration period, the effect on non participation vanishes and that on entrepreneurship becomes stronger. As for non-migrants, the migration experience would have increased their probability to be entrepreneurs showing the positive impact of migration on job creating activities in Albania.

Keywords: return migration, occupational choice, sample selection

JEL Classification: C35, F22, J24

Suggested Citation

Piracha, Matloob and Vadean, Florin, Return Migration and Occupational Choice. IZA Discussion Paper No. 3922, Available at SSRN: https://ssrn.com/abstract=1329560

Matloob Piracha (Contact Author)

University of Kent - Department of Economics ( email )

Keynes College
Kent, CT2 7NP
United Kingdom

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Florin Vadean

PSSRU, University of Kent ( email )

George Allen Wing
Cornwallis Building
Kent, CT2 7NF
United Kingdom

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