THEORETICAL ASPECTS OF INTERNATIONAL LABOR MIGRATION AGAINST THE BACKGROUND OF EXTERNAL SHOCKS

Authors

  • I. Ostrovskyi O.M. Beketov National University of Urban Economy in Kharkiv
  • B. Yukhnov Ukrainian Engineering Pedagogics Academy

DOI:

https://doi.org/10.33042/2522-1809-2022-2-169-33-38

Keywords:

international labor migration, external shocks, exogenous and endogenous factors, migration policy, migration rent.

Abstract

The article considers the theoretical problems of international labor migration under the influence of external shocks. The destructive impact of hostilities in Ukraine is underscored by the forecasts of international institutions. External migration of Ukrainians can have extremely serious consequences. Emphasis is placed on the distinction between exogenous and endogenous shock factors. Endogenous are macroeconomic in origin, forms and results, micro- and mesoeconomic in shifts in business processes. Exogenous shocks have the following forms of origin: macroeconomic "black swans" as destructive fluctuations in world markets; catastrophic natural disasters; socio-political conflicts.

The evolution of the main theories of international migration has been studied.

The relevance of theoretical principles and practical application of microeconomic analysis of migration processes is emphasized. Globalization and increasing inequality have directed a significant part of research to analyze population movements from peripheral to central countries, with a focus on the economic situation in donor countries.

Modern foreign theories of migration are based on the postulates of the neoclassical approach, which determines the movement of labor migration with a vector from countries and regions with excess human potential to countries with high demand and limited supply. Discrepancies become apparent when the use of cheap migrant labor makes a profit at the corporate level. At the same time, macroeconomic assessments note technological stagnation, the preservation of low levels of conditions and wages.

The role of migration rent in the policy of firms-recipients of foreign labor force is analyzed. In conditions of global inequality, the rent for the use of cheap labor has an objective basis and is the main motive for the formation of a special labor market for foreigners.

After the end of the war, the key issue for Ukraine and the world community will be the recovery of the national economy and the return of migrants to their homeland.

Supporting the refugee return process, ensuring their reintegration and employment in the Ukrainian economy will contribute to the rapid resumption of economic activity in Ukraine.

All practical steps must be based on sound theoretical principles, classical studies of international labor markets and labor migration processes.

Author Biographies

I. Ostrovskyi, O.M. Beketov National University of Urban Economy in Kharkiv

PhD, Associate Professor, Associate Professor of the Department

B. Yukhnov, Ukrainian Engineering Pedagogics Academy

PhD, Associate Professor, Associate Professor of the Department

References

Bohdan, T. (2022). How to stimulate the return of Ukrainians from abroad after the war. URL: https://www.epravda.com.ua/columns/2022/05/20/687244/ [in Ukrainian]

Zhalilо, Ya. (2022). How to quickly "restart" the economy in military conditions. URL: https://www.epravda.com.ua/columns/2022/03/17/684234/ [in Ukrainian]

Zlenko, N, Pavlenko, N. &. Yarova, V. (2020). The impact of demographic processes on the economic growth in Ukraine. Ekonomika ta derzhava, 10, 56–62. DOI: https://doi.org/10.32702/2306-6806.2020.10.56 [in Ukrainian]

Malynovska, O. (2018). Migration policy: global context and Ukrainian realities. Monograph. Kyiv, National Institute for Strategic Studies. [in Ukrainian]

Soboliev, V.M. & Musiiuk, I.O. (2020). The Trends of Employment in the Digital Economy. Business Inform, 10, 143–148. DOI: https://doi.org/10.32983/2222-4459-2020-10-143-148 [in Ukrainian]

Tyutyunnikova, S. & Romanika, T. (2019). Unstable Youth Employment under Conditions of the Digital Economy Domination. Young scientist, 5, 246–250. DOI: https://doi.org/10.32839/2304-5809/2019-5-69-54 [in Ukrainian]

Shevchenko, V. (2020). Economic shocks of pandemic: major types and outcomes. Black Sea Economic Studies, 56, 21−27. DOI: https://doi.org/10.32843/bses.56-3 [in Ukrainian]

Ukraine's GDP to shrink by 45% in a year – World Bank. (2022). URL: https://www.epravda.com.ua/columns/2022/03/17/684234/ [in Ukrainian]

Drannik, A. (2022). "How much is life": how Ukraine will return migrants. URL: https://vesti.ua/uk/politika-uk/skolko-stoit-zhizn-kak-ukraina-budet-vozvrashhat-migrantov [in Ukrainian]

Reed, E. (2020). Economic Shocks Definition and Examples. URL: https://finance.yahoo.com/news/economic-shocks-definition-examples-221454349.html

Ravenstein, E. (1889). The Laws of Migration: Second Paper. Journal of the Royal Statistical Society, 52, 241–305. DOI: https://doi.org/10.2307/2979333

Lee, E. (1966). Theory of Migration. Demography, 3(1), 47–57. DOI: https://doi.org/10.2307/2060063

Stouffer, S. (1940). Intervening Opportunities: A Theory Relating Mobility and Distance. American Sociological Review, 845–867. DOI: https://doi.org/10.2307/2084520

Lewis, W.A. (1955). The Theory of Economic Growth. London, Allen and Unwin.

Massey, D.S. (1988). International migration and economic development in comparative perspective. Population and Development Review,14, 383–413. DOI: https://doi.org/10.2307/1972195

Wallerstein, I. (1974). The Modern World System I. Capitalist Agriculture and the Origins of the European World Economy in the Sixteenth Century. New-York, Academic Press.

International Organization for Migration. (2018). The Global Compact for Safe, Orderly and Regular Migration. URL: https://www.iom.int/global-compact-migration

Piore, M. (1979). Birds of passage. Migrant labor and industrial societies. New York, Cambridge University Press.

Card, D. & Krueger, A.B. (2015). Myth and Measurement: The New Economics of the Minimum Wage. Princeton, University Press.

Published

2022-03-25

How to Cite

Ostrovskyi, I., & Yukhnov, B. (2022). THEORETICAL ASPECTS OF INTERNATIONAL LABOR MIGRATION AGAINST THE BACKGROUND OF EXTERNAL SHOCKS. Municipal Economy of Cities, 2(169), 33–38. https://doi.org/10.33042/2522-1809-2022-2-169-33-38