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Labor Market Integration and Migration: Republic of Kosovo
Author:
Stephen Ayerst
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Series:
Selected Issues Papers
Volume/Issue:
Volume 2025: Issue 001
Language:
English
Publication Date:
16 Jan 2025
DOI:
https://doi.org/10.5089/9798400298066.018
ISBN:
9798400298066
ISSN:
2958-7875
Pages:
12
Keywords:
Kosovo; Labor Markets; Population; Migration; EU integration; Policy simulation; labor market integration; Kosovo economy; labor market challenge; Unemployment; Labor shortages; Western Europe
Legal-disclaimer:
IMF Selected Issues Papers are prepared by IMF staff as background documentation for periodic consultations with member countries. It is based on the information available at the time it was completed.
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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.
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Cover Selected Issues Papers
Selected Issues Papers
Publisher:
International Monetary Fund