The Effect of Migration on Inequality: Case of Albania

The aim of this paper is to provide the effect of migration on inequality by generating the empirical evidence on the relationship between international remittances and income inequality. It has also been analyzed whether the socio-economic and political factors affect the internal and external migration as Albania is a country on internal and internationally move. Focusing on the external migration there are done some studies on which are the main countries of Albanian migration and the role of the remittances on inequality with regard to per capita income. As more than half of the Albanian population has direct exposure to migration phenomena, this examination aims to evaluate the level of the effect of remittances on the income inequality during 1992-2012 period. The estimated model will be offered by all fundamentals of regression analyze which will define the relation between the remittances (in % of GDP) and the income inequality. Remittances refer to official worker remittances flows, representing only money sent through official banking channels. After reasonable analysis it was argued that there is a weak correlation between remittances and income inequality as the main reasons of income inequality are other social, economic and political factors. DOI: 10.5901/ajis.2014.v3n3p31