Albania, Emigration, Remittances, Labor supply, Business formation, P2, J61, R23
Abstract
Survey evidence establishes the magnitude and determinants of emigration from
Albania during the first years of transition. By 1996, between 300,000 and 400,000
Albanians were working abroad. These tended to be young men from large, lowincome,
rural families and sent more than $800 million back to Albania in remittances
in 1996. These remittances increased consumption and living standards
and were, along with human capital acquired abroad, important in private sector
development. They also had an income effect that served to reduce unemployment
in Albania by reducing female labor supply.
