This paper investigates dynamic effects of remittances on households' poverty and income distribution. Using state-of-the-art matching techniques, we measure impacts based on counterfactual scenarios, and make a step forward by applying for the first time a dose-response function approach to assess poverty effects due to variations in the time-length of receiving remittances. Our results suggest that remittances alleviate both absolute and relative poverty levels and lead to a marginal increase in inequality in the case of Kosovo. We further demonstrate thatalthough poverty reduction effects are stronger in the short-runremittances have a positive poverty reduction effect over time. These findings have important welfare policy implications for low-and middle income economies with a high dependency on remittances.

A remarkable out‐migration from Kosovo occurred after the winter 2014/15, raising urgent questions about its underlying drivers and implications for both Kosovo and the destination countries. This article aims at providing a better understanding of key migration triggers and some particularities of the phenomenon. We link our empirically found migration drivers to Hirschman's () famous exit, voice or loyalty scheme by asking in how far the exit must be understood as the explicit alternative to voicing dissatisfaction with the current situation in the country. According to our results, the recent Kosovar out‐migration is a clear response to weak governance and thus goes beyond the widespread ‘migration‐cum‐remittances’ livelihood practice. In this sense it could be interpreted as a revolt against the political system. With view to policy implications for destination countries, we point at legal travel and migration opportunities as the better solution to channel both voice and exit.

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