Demographic change and migration

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Redesigning pension systems

The institutional structure of pension systems should follow population developments

10.15185/izawol.51 51 Góra, M

by Marek Góra

For decades, pension systems were based on the rising revenue generated by an expanding population (demographic dividend). As changes in fertility and longevity created new population structures, however, the dividend disappeared, but pension systems failed to adapt. They are kept solvent by increasing redistributions from the shrinking working-age population to retirees. A simple and transparent structure and individualization of pension system participation are the key preconditions for an intergenerationally just old-age security system.

Migration and families left behind

Families that stay behind when a member migrates do not clearly benefit

10.15185/izawol.144 144 Démurger, S

by Sylvie Démurger

About a billion people worldwide live and work outside their country of birth or outside their region of birth within their own country. Labor migration is conventionally viewed as economically benefiting the family members who are left behind through remittances. However, splitting up families in this way may also have multiple adverse effects on education, health, labor supply response, and social status for family members who do not migrate. Identifying the causal impact of migration on those who are left behind remains a challenging empirical question with inconclusive evidence.

Migrant well-being after leaving transition economies

Evidence is mixed on whether quality of life improves for migrants from post-socialist economies

10.15185/izawol.195 195 Nikolova, M

by Milena Nikolova

Most comparative research suggests that immigrants from post-socialist countries earn less than natives, work in jobs for which they are overqualified, and may experience unhappiness compared with natives, other immigrants, and non-migrants. In contrast, one study presents causal evidence which shows that moving from transition economies to live in the West increases the incomes, life satisfaction, and freedom perceptions of those who move. Credibly assessing whether leaving transition economies improves movers’ quality of life remains a challenging empirical question.

Encouraging women’s labor force participation in transition countries

Government policies can stimulate female labor force participation if coherent and well thought-out

10.15185/izawol.264 264 Pignatti, N

by Norberto Pignatti

Increasing women’s labor force participation is important to sustainable economic development, especially in economies with highly educated women and an aging population. Women’s participation varies across transition countries, driven by such economic and social factors as traditional views of gender roles and limited government support for caregivers. Still, in all countries there is clear scope for policies aimed at increasing women’s participation. In particular, in countries where women’s educational attainment is already high, policies to support a better work−life balance and female entrepreneurship look particularly promising.

Family structure and children’s educational attainment in transition economies

Access to education has been hampered by economic and family shocks in south-east Europe and countries of the former Soviet Union

10.15185/izawol.303 303 Mangiavacchi, L

by Lucia Mangiavacchi

Compared to developing economies, European transition economies had high levels of human capital when their transitions began, but a lack of resources and policies to protect poor families hampered children’s access to education, especially for non-compulsory school grades. Different phenomena associated with transition also negatively affected children’s education: e.g. parental absence due to migration, health problems, and alcohol abuse. These findings call for a greater policy focus on education and for monitoring of the schooling progress of children in special family circumstances.

Should agricultural employment in transition economies be encouraged?

Encouraging agricultural employment might reduce rural–urban migration and reduce hidden rural unemployment

10.15185/izawol.328 328 Lerman, Z

by Zvi Lerman

The increase in agricultural employment in Central Asia and Trans-Caucasus over the last two decades has had a detrimental effect on agricultural labor productivity and rural family incomes. Transition countries in the former USSR cannot, however, encourage exits from agriculture (as, for instance, in east Germany or the Czech Republic) due to the risk of mass rural–urban migration, which may exacerbate growing urban unemployment. With large rural populations, state budgets would be unable to deal with a new wave of unemployed in urban areas.