Labor Market Integration and Migration: Republic of Kosovo

Selected Issues Papers, January 16, 2025

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Labor Market Integration and Migration: Republic of Kosovo

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Bibliographic details

• Authors: Stephen Ayerst
• Published: January 16, 2025
• Series: Selected Issues Papers
• DOI: https://doi.org/10.5089/9798400298066.018

Summary and key findings

• The paper highlights recent trends in the Kosovo labor market and emigration.
• "Like other Western Balkan countries, Kosovo experienced a sharp decline in population over the previous decade, as emigration increased."
• Using a structural model of the labor market and migration, the paper examines the potential impact of further EU integration.
• Main trade-offs identified:
  • "Lower migration costs hurt the economy."
  • "Productivity convergence brought on by EU integration has an offsetting impact by increasing wages, lowering unemployment, and increase immigration."
• Policy simulations indicate policymakers have a diverse set of tools to boost potential and support the labor market.

Model, scenarios, and projections

• Analytical approach:
  • A structural model of the labor market and migration is used to assess impacts of EU integration.
• Scenario outcomes:
  • Lower migration costs → negative effects on the economy (explicitly stated as "hurt the economy").
  • Productivity convergence from EU integration → positive effects including:
  • increasing wages
  • lowering unemployment
  • increasing immigration

Policy recommendations and simulations

• Policy simulations show a range of interventions available to authorities, including:
  • structural reforms
  • active labor market policies
  • business support
  • labor participation support

Subject tags and keywords (as provided)

• Subject: Labor, Labor markets, Labor shortages, Migration, Population and demographics, Unemployment
• Keywords: EU integration, Kosovo, Kosovo economy, labor market challenge, labor market integration, Labor Markets, Labor shortages, Migration, Policy simulation, Population, Unemployment, Western Europe

Content in this bundle

• sipea2025001 - Section 1 & Section 2
  • sipea2025001 - Section 1 & Section 2 (Markdown version)
  • sipea2025001 - Section 1 & Section 2 (PDF)