Archive 2007

  • 04.12.2007

    Should I stay or should I go? Ukrainian migration in economic perspective


    Ukraine experiences substantial cross-border migration flows. In the recent past widespread poverty and unemployment have been the main reasons for migration. Other push factors are lack of access to financial services and bad housing conditions. Poor rural households supply most migrants. Migrants often work in low-skilled occupations. The location of a household in Western Ukraine increases the likelihood of migration. Migrants into low skilled work overwhelmingly migrate temporarily and seasonally and send most income as remittances to their families, which are staying in Ukraine. We conclude that migration is a strategy of households to cope with poverty. Furthermore, remittances may contribute to economic growth, increase domestic aggregate demand and reduce unemployment. The Government of Ukraine could increase the benefits of migration by negotiating with European countries legal temporary worker migration agreements. Removing rigidities in Ukraine’s labor market and other barriers to domestic migratio could provide domestic alternatives to cross-border migration. The development of rural areas and providing financial services would open up economic opportunities.

    Authors:  Handrich Lars, Данзер Олександр
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