Labor Migration and People’s Political and Economic Views in Transition Countries

Abstract

In this study, we focus on the effects of labor migration on the economic and political views of people in European, Caucasian, and Central Asian transition countries. During 30 years of transition, people’s views towards transition have demonstrated substantial variations from supports to oppositions. Labor migration can play roles in shaping their views. It can promote supports for transition by providing knowledges and norms related to liberal and democratic systems from foreign countries, a mechanism known as social remittances. However, transition countries also receive immigrants and the economic pressure associated with immigrants can reduce the supports. With survey data covering 27 transition countries and three years, 2006, 2010, and 2016, and remittance flow data as proxies for labor migration intensities, we empirically examine how sending and receiving labor migrants affect the preferences for a market economy and democracy. Our main findings are (i) that sending labor emigrants increases people’s preferences for a market economy but (ii) that receiving immigrants reduces those for a market economy and democracy. The former effect is observed in countries from which labor emigrants head to Western European countries, suggesting the roles of social remittances. Conversely, with immigrants, people increase their demand for governmental interventions and skeptic views towards democracy.

Keywords: transition countries, labor migration, social remittances, market economy, democracy

JEL Classification: F22, P26, P27