Migration and Adjustments to Shocks in Transition Economies
28 Pages Posted: 3 Oct 2001
Date Written: December 2001
Does migration facilitate regional adjustment to idiosyncratic shocks in transition economies; If so, one should find a strong relationship between regional unemployment and average wages on the one hand, and migration flows on the other. Yet, the evidence from transition economies indicates that the efficacy of migration in reducing inter-regional unemployment and wage differentials has been low. High wages appear to stimulate overall mobility rather than encourage a net immigration, and, similarly, unemployment tends to discourage overall mobility rather than encourage net emigration. Moreover, migration flows have actually been declining in the course of transition, even as inter-regional disparities have been rising.
Keywords: Migration, Unemployment, Regional Shocks
JEL Classification: F22, J61, P23
Suggested Citation: Suggested Citation