Selected for support in 2013, under the PEP initiative for "Policy Analysis on Growth and Employment" (PAGE), this project was led by a team of local researchers in Macedonia, who sought to explore whether remittances may be used to support the entrepreneurial activities of unemployed youth living in recipient households. This initiative emerges from two main observations: first, that low job creation and the persistently high youth unemployment rate (around 55%) are some of the most important socioeconomic problems in Macedonia. Second, remittance inflows represent, in average, about 4% of the country's GDP, and about USD 2,700 in additional income per household per year - of which the usage remain, however, largely unknown. Using data from a nationally-representative survey conducted in 2008, the research team applied advanced techniques of statistical and microeconomic analysis to examine how the employment status of youth in Macedonia varies owing to remittance inflow in the country, and whether the effect of remittances on youth labour supply is homogenous across genders, ethnic and rural/urban divide. Amongst the results of their analysis, they find that youth living in households receiving remittances have considerably larger probability to establish their own business, ranging between 28% and 33% compared to the non-youth non-receiving counterparts.
Find out more about their project findings and methods through the following PEP publications: