1. Juna Miluka Gero Carletto Benjamin Davis Alberto Zezza
The Vanishing Farm? The Impact of International Migration on Albanian Family Farming
Juna Miluka
Gero Carletto
Benjamin Davis
Alberto Zezza

2. Outline Background and Motivation Data Empirical Strategy
Estimation Results
Conclusions

3. Background Agriculture: a sector in turmoil Collapse of Communism
Rapid de-collectivization; 93% of cooperative land & 79% of state land privatized by 1993
Agriculture’s contribution to GDP fell from 42.5% in 1992 to 28.1% in 2001
Very small land sizes (≈ 1 ha), but highly fragmented (4 plots)
Over 90% of farmers use only family labor
Agriculture still employs 50% of workforce
LAND ALLOCATION PATTERN:
Fodder remains most important, about 46%
Cereals slight decline (particularly wheat vs. corn), 38%
Vegetables, potatoes and beans, no change

4. Background (cont’d) The migration explosion Country on the move
Rural population fell by over 15% since 1990
By 1996, 1/3 of the labor force had migrated
50%+ of hh exposed to int’l migration
1/3 hh currently with int’l migrant
2/3 from rural areas (upward trend)
Private transfers 14% of GDP (>2002); Muco puts figure at 25% in 1997

5. Migration and Agriculture
Despite magnitude of migration, and the vast potential of migration and remittances for agriculture, little evidence exists on relation and impact
Empirical literature evenly split
Different channels
income
credit
insurance
labor

6. Migration and Agriculture (cont’d)
Specific hypotheses:
Labor effort
Feminization of agriculture
Non-labor input use (to compensate for labor loss?)
Technical efficiency ?

7. Data 2005 Living Standards Measurement Survey (ALSMS05)
INSTAT and the World Bank
3,640 total households
1,849 rural households
Extended Migration Module
Separate Agriculture Module (Fall)

8. Model specifications Dependent Variables Independent Variables
Agricultural Labor (by gender)
Non-labor input expenses in agriculture
Technical efficiency
Income
Independent Variables
Migration (IV)
Human Capital
Natural and Physical Capital
Community and Regional Characteristics

9. Descriptive Statistics / 1
Migrant
Non-Migrant
Male Labor in Agriculture (hrs/year)
1,394.92
1,684.86
Percapita Male Labor in Ag. (hrs/year)
927.51
978.53
Female Labor in Ag. (hrs/year)
1,521.29
1,506.03
Percapita Female Lab. in Agriculture (hours/year)
910.46
949.24
Crop Income (Crop only)
51,591
51,942
Total Agricultural Income(leks)
391,668
358,685
Equipment Rental (leks)
15,474
11,427
Chemical Inputs (leks)
13,521
9,973
Livestock Expenditure (leks)
10,400
10,821

10. Descriptive Statistics / 2
Migrant
Non-Migrant
Land Area (Square Meters)
11,762.2
8,216.1
Female Headed Households (%)
10.4
4.8
Highest Level of Education in the Household
9.3
10.1
Coastal region
45.0
26.4
Distance Index (Proximity to Public Facilities)
0.20
0.34
Land Disputes (% of hh)
68.4
61.2
Spoke Italian or Greek in 1990 (%)
13.8
8.1
Minimum Distance From Border Crossings
120.0
112.1
Percentage of Males in the Municipality
13.7
14.4

11. Empirical Strategy Instrumental Variable Tobits Instruments
Languages
Migration Network
Distance to borders
IV Diagnostics

12. Estimation Results - Labor
Male Family Labor in Agriculture
Female Family Labor in Agriculture
Total
Percapita
Migration -
Female Headed Household
Age of Head of Household +
Age Head Squared
Highest Education in HH
Natural/Physical Capital index
Crime in the Community

13. Estimation Results (cont’d)
Chemicals
Equipment rental
Livestock exp.
Migration - +
Age of Household Head
Age Head Squared
Land Area (sqm)
Household plots (No)
Animals owned (TLU)

14. Estimation Results - Income
Total income
Migration +
Age of Head of Household -
Age Head Squared
Highest Education in HH
Land Area (sqm)
Animals owned (TLU)
Land disputes

15. Conclusions Moving out of agriculture?
Fewer hours worked in total and per capita terms
Less reduction for women
Less investments in productivity-enhancing and time-saving farm technologies
Investments in livestock production
No Impact on Crop Income and TE
Higher incomes (RNF?)

16. Policy Implications Stagnating Agriculture Forgone opportunity?
Managing withdrawal
Promote better use of migrants’ resources in agriculture (and RNF?)