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Reforms that keep you at home: The effects of economic transition on migration

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  • Martin Guzi
  • Štěpán Mikula

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 positive 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. We show that reforms that improve the management of infrastructure services have no link with migration patterns, which may be an important lesson for government policy.

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  • Martin Guzi & Štěpán Mikula, 2022. "Reforms that keep you at home: The effects of economic transition on migration," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 30(2), pages 289-310, April.
    • Handle: RePEc:wly:ectrin:v:30:y:2022:i:2:p:289-310
    DOI: 10.1111/ecot.12287
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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

    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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