Selected Issues Papers

Labor Market Integration and Migration: Republic of Kosovo

By Stephen Ayerst

January 16, 2025

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Format: Chicago

Stephen Ayerst. "Labor Market Integration and Migration: Republic of Kosovo", Selected Issues Papers 2025, 001 (2025), accessed January 21, 2025, https://doi.org/10.5089/9798400298066.018

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Summary

This 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. While 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 show that policymakers have a diverse set of tools—including structural reforms, active labor market policies, business support, and labor participation support—to boost potential and support the labor market.

Subject: Active labor market policies, Labor, Labor markets, Labor shortages, Macrostructural analysis, Migration, Population and demographics, Production, Productivity, Structural reforms, Unemployment, Unemployment rate, Wages

Keywords: Active labor market policies, Aging, Employment, Kosovo, Labor markets, Labor Markets, Labor shortages, Migration, Migration, Population, Productivity, Structural reforms, Unemployment, Unemployment rate, Wages

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