Microfinance Influence on Employment and Education in Kosovo
Session
Management, Business and Economics
Description
Support for microfinance continues to be on top of the agenda of policymakers in many European countries. The issuance of microloans by microfinance institutions is regarded as an appropriate tool for addressing financial exclusion by commercial banks and creating employment opportunities in the country. One of the critical objectives of microfinance institutions is to influence poverty reduction by providing credit for income- generating purposes. Yet, the suggestion of its actual effect on poverty reduction is still widely discussed. Poverty and unemployment have always been linked, with employment often seen as the response to poverty reduction. Education in the country is vital to its economic development. Lower education achievement rates reduce workers' negotiating power in the labor market and consequently increase unemployment in the country. In theory, access to finance increases the beneficiary's chances for employment due to the possibility of investing in education or entrepreneurial initiatives. This paper examines the relationship between microloans and the education achievement of the loan recipient in Kosovo and their impact on employment. Limited literature outlines a connection between receiving loans and microloan recipients' educational attainment. With the youth unemployment problem in Kosovo and the growth of microfinance institutions combined with this, it is essential to understand the implications of the activity of this institution on people's decision to follow education.
Proceedings Editor
Edmond Hajrizi
ISBN
978-9951-550-50-5
Location
UBT Kampus, Lipjan
Start Date
29-10-2022 12:00 AM
End Date
30-10-2022 12:00 AM
DOI
10.33107/ubt-ic.2022.418
Recommended Citation
Vranovci, Shpresim, "Microfinance Influence on Employment and Education in Kosovo" (2022). UBT International Conference. 432.
https://knowledgecenter.ubt-uni.net/conference/2022/all-events/432
Microfinance Influence on Employment and Education in Kosovo
UBT Kampus, Lipjan
Support for microfinance continues to be on top of the agenda of policymakers in many European countries. The issuance of microloans by microfinance institutions is regarded as an appropriate tool for addressing financial exclusion by commercial banks and creating employment opportunities in the country. One of the critical objectives of microfinance institutions is to influence poverty reduction by providing credit for income- generating purposes. Yet, the suggestion of its actual effect on poverty reduction is still widely discussed. Poverty and unemployment have always been linked, with employment often seen as the response to poverty reduction. Education in the country is vital to its economic development. Lower education achievement rates reduce workers' negotiating power in the labor market and consequently increase unemployment in the country. In theory, access to finance increases the beneficiary's chances for employment due to the possibility of investing in education or entrepreneurial initiatives. This paper examines the relationship between microloans and the education achievement of the loan recipient in Kosovo and their impact on employment. Limited literature outlines a connection between receiving loans and microloan recipients' educational attainment. With the youth unemployment problem in Kosovo and the growth of microfinance institutions combined with this, it is essential to understand the implications of the activity of this institution on people's decision to follow education.