What Determines the Incidence and Size of Remittances: Evidence for Kosovo

Abstract

Kosovo ranks highly both with regard to the rate of emigration of the labor force and the level of remittances to GDP. Given poor employment prospects in Kosovo, from an individual point of view emigration might be a strategy of escaping unemployment and contributing toward household incomes. In this paper, we investigate the determinants of the incidence and size of remittances among Kosovo’s emigrants. We provide unique evidence that helps to better estimate aggregate spending and remittances in Kosovo. This is the first systematic study of these issues in this post-socialist and post-conflict economy.