Many agricultural households in developing countries depend on international migration and nonfarm work to cope with the economic risks and uncertainty associated with farming. We examine the effects of international migration and remittances on rural households’ participation in nonfarm jobs and the earnings generated from these jobs. Using data on agricultural households in Albania, results indicate that remittances received from migrant household members induce reallocation of household labor to nonfarm self-employment jobs, and increase income from at-home farming. Overall, international migration contributes to rural development in Albania through the positive impact of remittances on households’ ability to diversify income and reduce income risks associated with farming