Abstract Personal earnings from work significantly determine living standards, poverty, and social exclusion in society. According to existing theories, there are several factors affecting wage determination, the most prominent being labour productivity and workers’ bargaining power. The impact of intra-regional labour mobility on wages in the Western Balkans has so far received little scholarly attention, partly because it was considered less relevant than the region’s well-documented emigration. This paper assesses the factors influencing wage determination in the Western Balkans, including intra-regional labour mobility. The results suggest that labour productivity and total employment have a significant positive impact, while there is no clear evidence regarding the number of work permits issued. These findings have important policy implications for future regional cooperation in the domain of intra-regional labour mobility.
Dimitar Nikoloski (Sun,) studied this question.
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