Who Remits More? Who Remits Less? Evidence from Kosovar Migrants in Germany and Their Households of Origin

Abstract

The prevalence of subsistence-oriented farming and the scarcity of non-farm employment make migration a common livelihood strategy in rural Kosovo. Consequently, many households rely heavily on remittances. Although migrants themselves often struggle to finance their everyday lives in their host countries, remittances continue to flow. As almost all migrants remit, it is required that the level of remittances be monitored and the factors determining the absolute amount of remittances to the home country be known. There are three overarching determinants: the connection between the migrant and the household of origin, the need for financial support of the household of origin and the financial means of the migrant. This contribution draws on an original, detailed and very recent database collected using an innovative survey design. It provides significant insights into the country-and culture-specific driving forces behind remittances from Germany to Kosovo.

The effects of migration on poverty and inequality in rural Kosovo

“…In the home country household not only the financial flows but also the decision to send migrants induces adjustments in the labour endowment and thus in income (and probably also consumption) strategies (e.g. Meyer et al 2012;Davis et al 2010).…”

“…The recent report of Gashi and Haxhikadrija (2012) nicely summarises results of available data and migration literature on Kosovo. Havolli (2011) and Meyer et al (2012) provide more detailed analyses of the drivers of remitting. When the impact of remittances on households in Kosovo is analysed, this is done based on a simple comparison of recipients and non-recipients: for instance, in Haxhikadrija (2009); Möllers et al (2013); and Elezaj et al (2012).…”

Determinants of Remittances: A Study in Cachar District of Assam

“…Migrants staying abroad for longer periods were more able to remit and thus the households could save and invest the remittances in better avenues (Arif, 1999, p. 25).The proportion of remittances seems to decline slightly with length of absence of the migrants from their home country (Connell & Brown, 2004, p. 9). Migrants who have spent a longer time in the host country remit less than those who migrate later (Meyer, Möllers, & Buchenrieder, 2012, p. 459). As their years of migration increase, migrants may stop remitting for two reasons.…”

Exit or Voice? The Recent Drivers of Kosovar Out‐migration

“…In the long history of Kosovar out-migration, leaving the country was never a welcome prospect for the migrants, but simply sheer necessity (Reineck, 1991). However, even after half of the estimated 500,000 people-strong diaspora became naturalized within the destination countries (UNDP, 2010), many of them living legally in the EU, strong connections with the home country were never lost (Meyer, M€ ollers, & Buchenrieder, 2012). It is estimated that every third household in Kosovo has migrant family members (Haxhikadrija, 2009).…”