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IZA Journal of Labor and Development

, 3:16

First Online: 29 September 2014Received: 15 October 2013Accepted: 05 June 2014


The economic wellbeing of a large number of rural Kosovar families depends heavily on migrants’ remittances. This paper aims at analysing the impact of migration on rural poverty and inequality in Kosovo. It draws on the 2009 nationally representative Kosovo Remittance Study. Analyses are based on a comparison with counterfactual migrant household incomes derived from Propensity Score Matching. We find that remittances have no impact on the extremely poor, but lift around 40% of migrant households above the vulnerability threshold. Gini coefficients show a tendency to increase due to migration. Determinants of different outcomes of migration are explored in a logit regression on migration success. Household and income structure as well as education play a role in how migrant households climb up the income ladder.

JELF22, F24, O15, P36

KeywordsMigration Remittances Poverty Inequality Kosovo Propensity score matching AbbreviationsATTAverage treatment effect on the treated

GDPGross Domestic Product



ESIEuropean Stability Initiative

KRSKosovo Remittance Study

PCPer capita

PSMPropensity Score Matching

Std. Dev.Standard deviation

Std. Err.Standard error

OECDOrganisation for economic co-operation and development

UNDPUnited Nations Development Programme

USAIDUnited States Agency for International Development

US$US dollar

SOKStatistical Office of Kosovo.

Electronic supplementary materialThe online version of this article doi:10.1186-2193-9020-3-16 contains supplementary material, which is available to authorized users.

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Autor: Judith Möllers - Wiebke Meyer


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