The Relationship Between Labor Market Migration and Human Capital in Albania

Abstract

The countries of the Western Balkans are characterized by a declining population, driven by low birth rates, population aging and continuous migration. Emigration from the region has been constant since the 1990s, evolving from irregular migration for work purposes among persons with low to medium skill levels for work to regular migration for purposes of family reunification, students studying abroad and, more recently, migration for work purposes of persons with a high level of skills. In 2020, the European Training Foundation (ETF), together with the Vienna Institute for International Economic Studies, launched a regional study entitled 'Dynamics of migration from a human capital perspective in the Western Balkans'. Its aim was to shed light on the triangular relationship between human capital formation, labor markets and migration, and to determine how the education system currently works and how the labor market affects migration in each country. The study included an analysis of existing literature and reports and the development of tools to analyze available data on Albanian migrants based on existing international statistics. Given the growing educational profile of Albanian migrants, avenues for bilateral agreements with the main destination countries for the management of skilled migration can be explored. The new EU Pact on Migration and Asylum (EC, 2020) may represent an opportunity to develop such a dialogue.