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

Author

Listed:
  • Guzi, Martin

    (Masaryk University)

  • Mikula, Stepan

    (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.

Suggested Citation

  • Guzi, Martin & Mikula, Stepan, 2018. "Reforms That Keep You at Home: The Effects of Economic Transition on Migration," IZA Discussion Papers 11369, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp11369
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    Cited by:

    1. Jiří Balcar & Jan Šulák, 2021. "Urban environmental quality and out-migration intentions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 66(3), pages 579-607, June.

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    More about this item

    Keywords

    EBRD transition indicators; emigration; post-communist countries; multilateral resistance;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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