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

Martin Guzi () and Štěpán Mikula ()

No 11369, IZA Discussion Papers from Institute for the Study of Labor (IZA)

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 (search for similar items in EconPapers)
JEL-codes: F22 J61 O15 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mig and nep-tra
Date: 2018-02
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