Porcescu, Sergiu Nestorowicz, Joanna Markowski, Stefan
Year of Publication:
CMR Working Papers 68/126
Since the 1990s, Moldova has relied on migration as a vent for labour oversupply and on inflows of migrant remittances as its main engine of economic growth. Labour migrants account for almost a quarter of the labour force and Moldova is one of the most remittance-dependent economies in the world. Although this resource-poor economy has grown in recent years, albeit not as fast as its neighbours, it has failed to create enough new jobs in new industries to offset job losses in legacy sectors. Thus, Moldovan economic performance in the 2000s can be described as remittance-led jobless growth. This is not sustainable in the long run and Moldova must widen its home resource base to create conditions favourable to achieving faster and sustainable economic growth. One such possibility is to invest in more job-oriented education and training. But this may intensify labour migration from Moldova. The paper considers opportunities for Moldova, an open economy with mobile labour, to "educate itself out" of the jobless growth.
Moldova remittances migration education development