Migration and Adjustments to Shocks in Transition Economies

Fidrmuc, Jan

doi:10.2139/ssrn.285189

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Migration and Adjustments to Shocks in Transition Economies

28 Pages Posted: 3 Oct 2001

See all articles by Jan Fidrmuc

Jan Fidrmuc

Brunel University - Department of Economics and Finance; L.E.M., Université de Lille; CESifo (Center for Economic Studies and Ifo Institute); Global Labor Organization (GLO); Institute for Strategy and Analysis, Government Office of the Slovak Republic

Date Written: December 2001

Abstract

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

Fidrmuc, Jan and Fidrmuc, Jan, Migration and Adjustments to Shocks in Transition Economies (December 2001). Available at SSRN: https://ssrn.com/abstract=285189 or http://dx.doi.org/10.2139/ssrn.285189