Articles
DOI DOI: 10.5281/zenodo.18442949

Employment Policies and Productivity: The Impact of Migration and “Brain Drain” on Firm Performance in North Macedonia

Fatmir Xheladini1
  1. 1 University of Tetovo, Tetovo, North Macedonia; Str. Ilinden, nn., 1200 Tetova, North Macedonia

Abstract

This paper examines how high-skill emigration (“brain drain”) affects firm
productivity in North Macedonia and whether employment policy intensity
mitigates the adverse effect. The study frames brain drain as a firm-level
constraint operating through skill gaps, higher turnover, and disrupted tacit
knowledge transfer. Methods propose a panel-style empirical strategy linking
firm performance indicators to regional brain-drain measures and policy intensity
(training/reskilling and job-matching instruments). A moderated regression
specification is used to estimate the migration effect and the interaction with
policy intensity, while recommended robustness checks include firm fixed effects,
sector controls, and instrumental-variable strategies for migration endogeneity.
Using a coherent illustrative dataset to demonstrate the analytical pipeline, results
show a negative association between brain-drain intensity and labor productivity
and a partial offset where policy intensity is higher. The conclusions emphasize
that employment policies designed around scarce skills and retention mechanisms
can reduce productivity losses in skill-intensive sectors. The paper provides
actionable implications for firms’ human-capital strategies and for policy makers
focusing on skill formation, matching efficiency, and incentives to retain talent.

How to Cite

Xheladini, F. (2026). Employment Policies and Productivity: The Impact of Migration and “Brain Drain” on Firm Performance in North Macedonia. Transnational Academic Journal of Economics, 2(3), 236–240. https://doi.org/10.5281/zenodo.18442949
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