Selected Issues Papers

Population Dynamics, Labor Market Integration, and Migration: Republic of North Macedonia

By Stephen Ayerst, Simona Kovachevska Stefanova

May 21, 2025

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Format: Chicago

Stephen Ayerst, and Simona Kovachevska Stefanova. "Population Dynamics, Labor Market Integration, and Migration: Republic of North Macedonia", Selected Issues Papers 2025, 064 (2025), accessed June 19, 2025, https://doi.org/10.5089/9798229011389.018

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Summary

The population of North Macedonia has been steadily declining over the past two decades and is projected to continue to decline into the foreseeable future due to emigration. This paper estimates an expected cost of the population decline on potential output growth of around 0.5 percentage points. The paper employs a structural model of the European labor market with migration. Increasing productivity benefits potential output and helps protect the labor force from emigration. Productivity-increasing structural reforms, active labor market policies, new business support, and labor participation support can boost output, helping to offset some of the negative impact of migration.

Subject: Gender, Gender inequality, Labor, Labor markets, Population and demographics, Potential output, Production, Unemployment

Keywords: D. modeling labor markets, EU integration, Gender inequality, Labor market integration, Labor Markets, Migration, North Macedonia, Northern Europe, Policy scenario, Population, Population dynamics, Potential output, Unemployment

Publication Details

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