The Determinants of Migration and Remittances in Albania

Type Journal Article - International Journal of Scientific & Engineering Research
Title The Determinants of Migration and Remittances in Albania
Volume 3
Issue 4
Publication (Day/Month/Year) 2012
Abstract— This paper uses the recent Albanian Living Standards Measurement Survey 2008 to analyze the determinants of migration and remittances in Albania. It addresses one of the main limitations of the literature on migration and remittances, namely their separate study, and analyzes the determinants of these two phenomena jointly. The analysis is focused on the household, and the migration decision process is made by the household as a whole, seeking to maximize expected future utility, which is achieved through remittances sent by the migrant. In terms of determinants of migration and remittances the study shows that migration and the receipt of remittances are selective processes strongly affected by household characteristics. We do not find evidence for the existence of a ‘migration hump’ with respect to per capita expenditures and/or household wealth, and the brain drain does not seem to be an issue. The probability to migrate and remit of at least one household member is found to be influenced mainly by household characteristics number of adults and number of children, gender ratio and location. Unlike many other studies we control for relative deprivation, and find evidence in favour of the relative deprivation theory of migration

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