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

38 Pages Posted: 28 Mar 2017

See all articles by Ricardo Hausmann

Ricardo Hausmann

Harvard University - Harvard Kennedy School (HKS)

Ljubica Nedelkoska

Harvard University - Center for International Development (CID); Leuphana University of Lueneburg

Date Written: January 1, 2017

Abstract

Albanian migrants in Greece were particularly affected by the Greek crisis, which spurred a wave of return migration that increased Albania’s labor force by 5% between 2011 and 2014 alone. 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. 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, self employment and subsistence agriculture into commercial agriculture.

Keywords: Return migration, wages and employment of non-migrants

JEL Classification: J21, J23, J24, J31, J61

Suggested Citation

Hausmann, Ricardo and Nedelkoska, Ljubica, Welcome Home in a Crisis: Effects of Return Migration on the Non-Migrants’ Wages and Employment (January 1, 2017). HKS Working Paper No. RWP17-015. Available at SSRN: https://ssrn.com/abstract=2939702 or http://dx.doi.org/10.2139/ssrn.2939702

Ricardo Hausmann (Contact Author)

Harvard University - Harvard Kennedy School (HKS) ( email )

79 John F. Kennedy Street
Mailbox 34
Cambridge, MA 02138
United States
617-496-3740 (Phone)
617-496-8753 (Fax)

HOME PAGE: http://www.hks.harvard.edu/about/faculty-staff-directory/ricardo-hausmann

Ljubica Nedelkoska

Harvard University - Center for International Development (CID) ( email )

One Eliot Street Building
79 JFK Street
Cambridge, MA 02138
United States

Leuphana University of Lueneburg ( email )

Scharnhorststraße 1
Wilschenbrucher Weg 69
Lüneburg, 21335
Germany

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