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Kosovo's small economy substantially relies on money from abroad: an extraordinarily high number of migrants contribute to foreign capital inflow through remittances; remittances represented around 13% of gross domestic product (GDP) in 2009. This means that the well-being of many Kosovar families financially depends on their migrated family members (UNDP 2010). The most important destination of Kosovar migrants, Germany, alone hosts an estimated number of around 300,000 Albanian migrants from Kosovo. This is about half of all migrated Kosovar Albanians. However, reliable information on the specific situation of the migrants and their origin households is scarce. Adding to recent efforts to gain more knowledge about Kosovo and its remittances sending migrants, e.g. the UNDP's 2010 Kosovo Remittance Study, this discussion paper puts a specific focus on rural Kosovo, where many migrants come from and more than half of the Kosovar population and two thirds of the poor live (World Bank and SOK 2011). Our study aims at shedding light on the socio-economic situation of Kosovar farm households with migrants in Germany. We present data on both sides of migration: the migrant household in the destination country as well as the remittances receiving household in Kosovo. In our analysis of migrant households, we present results on socio-economic features of three migration waves. Individual demographic characteristics of the migrant are analysed as well as economic features including the income situation and the remitting behaviour. We furthermore discuss the nature of migration - if it is planned as a temporary or permanent move - and the return prospects of the migrants. For the corresponding farm households in Kosovo we present results on their socio-economic situation and specifically look at poverty and inequality indicators and discuss possible development impacts in the recipient households. We analyse an original sample of 226 Albanian migrants from Kosovo who have been interviewed by means of a structured questionnaire in 2009/10 in Germany as well as the corresponding sample of their origin farm households in rural Kosovo. For a comparison of recipient with non-recipient households we draw from an additional set of 55 non-recipient Kosovar households.

Kosovo's small economy substantially relies on money from abroad: an extraordinarily high number of migrants contribute to foreign capital inflow through remittances; remittances represented around 13% of gross domestic product (GDP) in 2009. This means that the well-being of many Kosovar families financially depends on their migrated family members (UNDP 2010). The most important destination of Kosovar migrants, Germany, alone hosts an estimated number of around 300,000 Albanian migrants from Kosovo. This is about half of all migrated Kosovar Albanians. However, reliable information on the specific situation of the migrants and their origin households is scarce. Adding to recent efforts to gain more knowledge about Kosovo and its remittances sending migrants, e.g. the UNDP's 2010 Kosovo Remittance Study, this discussion paper puts a specific focus on rural Kosovo, where many migrants come from and more than half of the Kosovar population and two thirds of the poor live (World Bank and SOK 2011). Our study aims at shedding light on the socio-economic situation of Kosovar farm households with migrants in Germany. We present data on both sides of migration: the migrant household in the destination country as well as the remittances receiving household in Kosovo. In our analysis of migrant households, we present results on socio-economic features of three migration waves. Individual demographic characteristics of the migrant are analysed as well as economic features including the income situation and the remitting behaviour. We furthermore discuss the nature of migration - if it is planned as a temporary or permanent move - and the return prospects of the migrants. For the corresponding farm households in Kosovo we present results on their socio-economic situation and specifically look at poverty and inequality indicators and discuss possible development impacts in the recipient households. We analyse an original sample of 226 Albanian migrants from Kosovo who have been interviewed by means of a structured questionnaire in 2009/10 in Germany as well as the corresponding sample of their origin farm households in rural Kosovo. For a comparison of recipient with non-recipient households we draw from an additional set of 55 non-recipient Kosovar households.

(...) The analyses of the motives for remitting in this research are based on an empirical quantitative dataset collected in 2009/2010. This dataset contains information on 225 Kosovo-Albanian migrants living in Germany and their corresponding rural origin households in Kosovo. This study design is innovative and exceptional for two reasons. First, because usually only one side of the remitting dyad is included in the analysis, i.e. the remitting migrant in the host country or the receiving household at the origin. Second, a new methodology is introduced in the analysis of motives for remitting. It is argued that the common, socio-economic perspective does not suffice to explain the motives for remitting. For this reason, the analysis starts with a common approach for the identification of determinants of remittances using Ordinary Least Squares (OLS). The results are then compared with an analysis based on the Theory of Planned Behaviour (TPB) applied in a Structural Equation Model (SEM). The TPB, borrowed from social psychology, is employed for the first time in this field of research. It is chosen with the purpose of widening the perspective on the motives of remitting through the representation of the inherent cognitive processes that underpin the decision-making process about remitting. The application of the TPB is based on three core constructs: the attitude towards remitting, the perceived norms surrounding remitting, and the perceived control over remitting. It is assumed that these three constructs shape the intention to remit. Additionally, socio-economic determinants, which have shown significance in the common approach, are included. The results of the OLS analysis generally comply with earlier empirical findings. The variables with significant impact on remittances can be split into three groups: (1) the closeness of the relation between the migrant and the origin household; (2) the financial capacity to remit of the migrant; and (3) the need for support by the origin household. It can be confirmed that the closer the relation between the migrant and the relatives at the origin, the better the financial endowment of the migrant; further, the more severe the need for financial support by the origin household is, the higher are the remittances. The results of the TPB approach indicate that the socio-economic determinants contribute to the explanation of the intention to remit only to a small extent. The main impact on the intention to remit stems from the attitude of the migrant towards remitting and the perceived norms on remitting. Consequently, if the migrant has a favourable opinion about remitting and feels that s/he is expected to remit, the intention to remit is stronger. (...) Die Analysen zu den Motiven der Rücküberweisungen basieren auf einem empirischen quantitativen Datensatz mit 225 Fällen aus den Jahren 2009/2010. Es wurden sowohl die Geld transferierenden Migranten in Deutschland als auch die dazugehörigen ländlichen Empfängerhaushalte in Kosovo befragt. Dieses Forschungsdesign ist im Hinblick auf seine Zweiseitigkeit außergewöhnlich und innovativ, denn normalerweise wird nur eine Seite, entweder die des Transfersenders oder die der Transferempfänger, direkt befragt. Auch analytisch wird in dieser Arbeit neben dem herkömmlichen Ansatz ein neuer methodischer Weg zur Analyse der Motive eingeschlagen. Es wird in Frage gestellt, ob die geläufige sozio-ökonomische Perspektive ausreicht, um einen detaillierten Einblick in die Motive der Rücküberweisungen zu geben. Ausgehend von einem herkömmlichen Ansatz für die Identifikation der Determinanten der Transfers mit Hilfe von Ordinary Least Squares (OLS) wird anschließend die Perspektive auf die Beweggründe für die Transfers mit Hilfe der Theorie des geplanten Verhaltens erweitert. Diese Perspektiverweiterung hat zum Ziel, die inneren, kognitiven Prozesse des Migranten während der Entscheidungsfindung über Rücküberweisungen abzubilden. Die Ergebnisse der konventionellen Analyse entsprechen weitgehend den Ergebnissen früherer Studien. Die Variablen mit signifikantem Einfluss auf die Transfersummen können dabei in drei Gruppen unterteilt werden: (1) die Enge der Beziehung zwischen Migrant und Empfängerhaushalt, (2) die Ausstattung des Migranten mit finanziellen Mitteln, die Rücküberweisungen ermöglichen, und (3) den Bedarf des Empfängerhaushaltes an finanzieller Unterstützung von Seiten des Migranten. Es kann gezeigt werden, dass die Rücküberweisungen umso höher sind, je enger die Beziehung zwischen Sender und Empfänger, je besser die finanzielle Ausstattung des Migranten und je bedürftiger der Empfängerhaushalt ist. Die Umsetzung der Theorie des geplanten Verhaltens in einem Strukturgleichungsmodell basiert auf drei Kernkonstrukten: die Einstellung gegenüber Rücküberweisungen, die wahrgenommenen Normen, die Rücküberweisungen umgeben, und die wahrgenommene Kontrolle über die Durchführbarkeit der Transfers. Die Theorie geht davon aus, dass diese drei Konstrukte maßgeblich die Handlungsintention bestimmen. Zusätzlich werden die sozio-ökonomischen Determinanten, die im herkömmlichen Ansatz einen signifikanten Einfluss auf die Summe der Transfers gezeigt haben, in die Analyse aufgenommen. Die Ergebnisse dieses innovativen Ansatzes deuten darauf hin, dass die sozio-ökonomischen Determinanten einen vergleichsweise geringen Erklärungsbeitrag zur Intention, Rücküberweisungen zu tätigen, leisten. Der größte Erklärungsbeitrag zur Intention geht von der Einstellung des Migranten gegenüber Rücküberweisungen und den von ihm empfundenen Normen um dieses Verhalten aus. Wenn der Migrant also positiv über Rücküberweisungen denkt und einen Erwartungsdruck ihm gegenüber empfindet, Geld zu schicken, dann ist seine Intention stärker, dieses Verhalten umzusetzen.

This paper approaches the migrant’s motivation to remit from a new, behavioural perspective. We apply the well-established Theory of Planned Behaviour (TPB) using a structural equation model for the first time for this specific research question. Our micro-dataset stems from a 2009/10 survey, covering Albanian migrants from Kosovo living in Germany as well as their home-country households. More than 90% of Kosovar migrants living in Germany remit. However, little is known about their underlying motivations. Our analytical results show that the migrant’s attitude and norms are decisive for the remitting behaviour. The common socio-economic approach lacks explanatory power backed by theory.

The European Union (EU) is the main source of remittances world wide and Albania, struck by abject poverty, is Europe’s number one country sending out migrants. Albania’s economy as well as its households’ welfare strongly depend on remittances. Consequently, the topic of migration is cutting-edge for EU and Albanian policy makers. Thus, up-to-date information is decisive for taking effective policy measures. This poster paper aims at making a fruitful contribution to understanding the varied context of migration in Albania. It presents recent data on socio-economic characteristics of households with absent family members. A binary logistic regression is employed to identify determinants of participation in international migration in Northern Albania.

The paper uses up-to-date household data from two Northern-Albanian regions. It summarises socio-economic facts on taking up remunerative non-farm employment and identifies the determinants of non-farm income diversification at the farm household level based on a binary logistic regression. Furthermore, the paper provides insight in the northern-Albanian farming structure, migration patterns, attitudes towards and reasons for income diversification into the non-farm sector. Income diversification indeed has a positive impact on the welfare of the households: A statistically significant increasing trend in incomes with rising diversification level was observed. Dieser Beitrag fasst mit Hilfe von aktuellen Haushaltsdaten aus zwei nordalbanischen Untersuchungsregionen das sozioökonomische Umfeld und insbesondere die einkommenschaffenden Tätigkeiten im außerlandwirtschaftlichen Sektor zusammen. Eine binäre logistische Regression zeigt die maßgeblichen Einflussfaktoren außerlandwirtschaftlicher Einkommensdiversifizierung auf der Ebene landwirtschaftlicher Haushalte. Außerdem gibt diese Arbeit Einsicht in die Agrarstruktur Nordalbaniens, Merkmale der dort vorgefundenen Migrationsmuster, die Einstellungen zu und Gründe für die außerlandwirtschaftliche Einkommensdiversifizierung. Die Analyse zeigt einen positiven Einfluss von Einkommensdiversifizierung auf den Wohlstand der Haushalte: Es konnte ein statistisch signifikanter Trend bestätigt werden, der zeigt, dass mit steigendem Diversifikationsniveau das Haushaltseinkommen steigt.

The paper uses up-to-date household data from two Northern-Albanian regions. It summarises socio-economic facts on taking up remunerative non-farm employment and identifies the determinants of non-farm income diversification at the farm household level based on a binary logistic regression. Furthermore, the paper provides insight in the northern-Albanian farming structure, migration patterns, attitudes towards and reasons for income diversification into the non-farm sector. Income diversification indeed has a positive impact on the welfare of the households: A statistically significant increasing trend in incomes with rising diversification level was observed.

(...) The analyses of the motives for remitting in this research are based on an empirical quantitative dataset collected in 2009/2010. This dataset contains information on 225 Kosovo-Albanian migrants living in Germany and their corresponding rural origin households in Kosovo. This study design is innovative and exceptional for two reasons. First, because usually only one side of the remitting dyad is included in the analysis, i.e. the remitting migrant in the host country or the receiving household at the origin. Second, a new methodology is introduced in the analysis of motives for remitting. It is argued that the common, socio-economic perspective does not suffice to explain the motives for remitting. For this reason, the analysis starts with a common approach for the identification of determinants of remittances using Ordinary Least Squares (OLS). The results are then compared with an analysis based on the Theory of Planned Behaviour (TPB) applied in a Structural Equation Model (SEM). The TPB, borrowed from social psychology, is employed for the first time in this field of research. It is chosen with the purpose of widening the perspective on the motives of remitting through the representation of the inherent cognitive processes that underpin the decision-making process about remitting. The application of the TPB is based on three core constructs: the attitude towards remitting, the perceived norms surrounding remitting, and the perceived control over remitting. It is assumed that these three constructs shape the intention to remit. Additionally, socio-economic determinants, which have shown significance in the common approach, are included. The results of the OLS analysis generally comply with earlier empirical findings. The variables with significant impact on remittances can be split into three groups: (1) the closeness of the relation between the migrant and the origin household; (2) the financial capacity to remit of the migrant; and (3) the need for support by the origin household. It can be confirmed that the closer the relation between the migrant and the relatives at the origin, the better the financial endowment of the migrant; further, the more severe the need for financial support by the origin household is, the higher are the remittances. The results of the TPB approach indicate that the socio-economic determinants contribute to the explanation of the intention to remit only to a small extent. The main impact on the intention to remit stems from the attitude of the migrant towards remitting and the perceived norms on remitting. Consequently, if the migrant has a favourable opinion about remitting and feels that s/he is expected to remit, the intention to remit is stronger.