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Montenegro faces both internal and external migration flows. Internal migration is primarily from the northern region towards the central and southern parts of the country (and from rural to urban areas), causing depopulation of municipalities in the north. There are no comprehensive official records of outward migration in Montenegro. Therefore, the information is based on data provided by Eurostat (on migration in European Union (EU) host countries) and reports on migration trends for the entire South Eastern European region (namely the Western Balkans). The study’s aim is to shed light on the triangular relationships between human capital formation, labor markets and migration, and to determine how the current functioning of the education system and the labor market affects migration in Montenegro.