Reforms that Keep You at Home: The Effects of Economic Transition on Migration

29 Pages Posted: 12 Mar 2018

See all articles by Martin Guzi

Martin Guzi

Masaryk University; Central European Labour Studies Institute (CELSI); IZA Institute of Labor Economics

Štepán Mikula

Masaryk University

Abstract

Theory asserts that individuals' migration decisions depend more on their expectations about future income levels than on their current income levels. We find that the implementation of market-oriented reforms in post-communist countries, by forming good economic prospects, has reduced emigration as predicted by theory. Our estimates show that migration flows are highly responsive to reforms supporting private enterprises and financial services, which provide individuals with strong signals about their future prospects. Reforms that improve the management of infrastructure services are shown to have no link with migration patterns and this may be an important lesson for government policy.

Keywords: EBRD transition indicators, emigration, post-communist countries, multilateral resistance

JEL Classification: F22, J61, O15

Suggested Citation

Guzi, Martin and Mikula, Štepán, Reforms that Keep You at Home: The Effects of Economic Transition on Migration. IZA Discussion Paper No. 11369. Available at SSRN: https://ssrn.com/abstract=3137500

Martin Guzi (Contact Author)

Masaryk University ( email )

Lipova 41a
Brno, 60200
Czech Republic
+420549496766 (Phone)

HOME PAGE: http://www.muni.cz/econ/people/233611

Central European Labour Studies Institute (CELSI)

Zvolenská 29
Bratislava, 82109
Slovakia

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

HOME PAGE: http://legacy.iza.org/en/webcontent/personnel/photos/index_html?key=5347

Štepán Mikula

Masaryk University

Lipová 41a
Brno, 602 00
Czech Republic

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