Republic of Kosovo: Selected Issues

IMF Staff Country Reports, December 23, 2024

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Republic of Kosovo: Selected Issues

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Bibliographic details

• Published: December 23, 2024
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9798400297991.002

Overview

• This Selected Issues 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.
• The paper uses a structural model of the labor market and migration to examine the potential impact of further EU integration.

Major findings from the structural model and scenarios

• Lower migration costs associated with further EU integration hurt the economy.
• Productivity convergence brought on by EU integration has an offsetting impact by:
  • increasing wages,
  • lowering unemployment, and
  • increasing immigration.
• Policy simulations indicate policymakers have a diverse set of tools to boost potential and support the labor market, and different policy instruments tend to produce similar macroeconomic impacts.

Policy simulations and recommendations

• Policy tools examined:
  • structural reforms,
  • active labor market policies,
  • business support, and
  • labor participation support.
• Key policy implications:
  • While the policies target various stages of the labor market, they have similar macroeconomic impacts.
  • Policymakers should focus on policies with the largest potential impact relative to the cost of implementation.
  • Policies should be combined with careful monitoring and updating to ensure they remain effective and efficient.

Subjects and keywords

• Subject: Digitalization, Expenditure, Labor, Labor markets, Pension spending, Pensions, Public employment, Technology
• Keywords: Digitalization, ECB monetary policy PASSTHROUGH, ECB policy rate Passthrough, EU integration, Europe, gender wage gap, Global, Labor markets, Pension spending, Pensions, Public employment, wage gender gap, Western Europe, women wage

Source: Republic of Kosovo: Selected Issues (IMF Staff Country Reports 2024, 365).

Content in this bundle

• Republic of Kosovo: Selected Issues; IMF Country Report No. 24/365; December 4, 2024
  • Republic of Kosovo: Selected Issues; IMF Country Report No. 24/365; December 4, 2024 (Markdown version)
  • Republic of Kosovo: Selected Issues; IMF Country Report No. 24/365; December 4, 2024 (PDF)