Population Dynamics, Labor Market Integration, and Migration: Republic of North Macedonia

The population of North Macedonia has been steadily declining over the past two decades and is projected to continue to decline into the foreseeable future due to emigration.

Volume/Issue: Volume 2025 Issue 064

Publication date: May 2025

ISBN: 9798229011389

$15.00

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Topics covered in this book

This title contains information about the following subjects. Click on a subject if you would like to see other titles with the same subjects.

Labor , Demography , Emigration and Immigration , Gender Studies , North Macedonia , Labor Markets , Population , Migration , Productivity , Women , Unemployment rate , Employment , Migration , Potential output , Labor markets , Active labor market policies , Total factor productivity , Gender inequality , Unemployment

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Summary

The population of North Macedonia has been steadily declining over the past two decades and is projected to continue to decline into the foreseeable future due to emigration. This paper estimates an expected cost of the population decline on potential output growth of around 0.5 percentage points. The paper employs a structural model of the European labor market with migration. Increasing productivity benefits potential output and helps protect the labor force from emigration. Productivity-increasing structural reforms, active labor market policies, new business support, and labor participation support can boost output, helping to offset some of the negative impact of migration.