THE FEATURES OF LABOR EMIGRATION FROM THE SLOVAK REPUBLIC.
Grencikova, Adriana ; Skackauskiene, Ilona ; Spankova, Jana 等
THE FEATURES OF LABOR EMIGRATION FROM THE SLOVAK REPUBLIC.
Introduction
Approximately 3.3% (or 258 million people in 2017) of the world
population lives in a country other than their country of origin (Mboup
2018). Since the European Union (EU) citizens have the right to free
movement, settlement and employment across the EU, this has led to
increased labor mobility between member states. Migration flows over
past decades among EU member states and in- and outside of the EU have
had a significant impact on the current population size in the most
countries: 4.3 million people immigrated to one of the EU-28 member
states during 2016 (Eurostat 2018). Emigration from the Central and
Eastern Europeans is very visible (Szarucki et al. 2016), with the
particular emphasis on Romanians, Lithuanians, Latvians, Hungarian,
Croatian and Slovaks.
Migration - a change of usual residence to a different country -
has positive and negative impacts for both the country of origin and the
country of immigration. For the latter, it holds potential value for
economic growth by introducing new ideas from around the world as well
as diverse cultural heritage and thinking (Yeasmin 2016), but for the
sending country it may cause the effects of 'brain drain. The
Slovak Republic is a country that faces the outflow of qualified workers
abroad, and the index of aging is one of the most dynamic in Europe. In
that light, the authors have designed this study to examine the link and
the reasons for emigration to work from the Slovak Republic. For the
purpose of the article the authors examined the reasons for the
decisions of people to emigrate for work, duration of stay abroad, the
possibility of returning to Slovakia, the relationship between GDP
growth and improvement of the economic situation in Slovakia and the
number of emigrants to work abroad, the relationship between the minimum
wage and the number of labor emigrants. The article relies upon findings
of a survey of emigrated people conducted in Slovakia in 2016 and
includes correlation analysis as well.
The paper is organized as follows. Firstly, we review the
theoretical background of labor migration, thus allow us to indicate the
main factors for emigration. Then we describe the research methodology,
including the possible limitations of methods. The empirical analysis is
described in the third section, while the last section concludes the
paper.
1. Theoretical discussion
Migration is a phenomenon so extensive that it is not practicable
to define it by using one theory. There are several theories that can
build on each other, but because of different views on the causes of
migration in the various scientific disciplines, some theories can be
mutually exclusive (Bilan and Cabelkova 2015, Bocker 1994, Czaika 2015).
Bahna (2011) defines migration as "the process of relocation
of people outside the territory of residence, permanent or temporary,
for a longer or shorter period of time". Migration is also a
response to changes in living conditions, caused by population growth,
development of production and trade, formation of countries, states,
nations, climatic conditions, as well as violent causes, such as war
(Thomas 2016, Divinsky 2005, Vojtovic 2013, Strielkowskia and Bilan
2016, Zabarauskaite and Skackauskiene 2014). Jenicek and Foltynet (2010)
considers migration as a "reaction of humanity on unequal
distribution of resources, services and opportunities". According
to Bolecekova (2010), migration is the subject of the examination of
several scientific disciplines as a multidimensional phenomenon,
especially demography, sociology, international relations, international
law, geography and others, but international migration is moving people,
that they are crossing borders, in order to settle in a country other
than the country of origin for a long time.
Professional literature provides many breakdowns of migration.
According to Benda (2011), migration is divided into external (abroad)
and internal. External migration represents a "movement of persons
across administrative borders of the states to take up residence
permanently or temporarily in the other country" (Bolecekova 2010).
Internal migration is understood as a "move in a defined territory,
without exceeding its boundaries (e.g., in the intentions of state or
the same region)" (Jurcova 2005). The author emphasizes that
internal migration has a decisive influence on the gains and losses of
population in the various regions in this context.
Mobility and migration of a labor force are used many times as
synonyms in the literature, but we have to distinguish between them.
Labor force mobility means any spatial movement of production factor
"work". "Migration has stable character because the
parallel change of residence takes place in this case. On the contrary,
there is an ongoing spatial movement of labor without a change of
residence, it is a spatial (intraregional and interregional)
commuting" (Saleh Mothana 2007).
Labor migration is part of international migration which became of
great importance. A person who wishes to actively carry out some work in
the country where the person is not a citizen and a person receives an
appropriate reward in the form of wages and salary, we refer to as the
migrant for work. Immigrant for work means a person who immigrates to
the country, mainly due to finding decent jobs. Emigrant for work means
that inhabitant who left either temporarily or permanently, the country
with the intent to carry out specific work abroad. We considered labor
migrant person as a person enters in the country as a foreign labor
force with an invitation from the government or their future employer.
It can also be a person who entered the territory of the country for
this purpose, to find work abroad (Divinsky 2005).
The difference between labor migration and economic migration is
the motive - for economic migration the motive is the desire for better
living conditions, mainly economic and social, a prerequisite for
obtaining them is not necessarily the exclusively change jobs. On the
contrary, labor migration is linked solely with jobs, but it can be seen
as a subset of economic migration, i.e., is an expression of efforts to
improve living conditions through labor migration (Bolecekova 2010).
Researchers (Barsova and Barsa 2005) divided labor migration as
permanent and temporary. In case of permanent labor migration is
migrant, who settled in the country to which they went for work together
with their families. For temporary labor migration is a social response
on needs of the labor market, these needs cannot be covered from
domestic sources for various reasons. Various common goals are monitored
in these types of labor migration. Promoting economic development of the
country and population growth are notably monitoring for the permanent
labor migration and temporary migration. It focuses on the substitution
of a number of employees on unfilled vacancies in the labor market, in
particular.
Literature review on labor migration has revealed both negative and
positive impacts, both in the country of origin and the country of
immigration. Among one of the negative impacts of labor migration, we
can include 'brain drain outside the country of the state.
Emigration may have the direct effect of decreasing the average human
capital in regions of origin (Anelli and Peri 2017). Particularly
developing of countries loses out because leakage of the highly
qualified workforce, these countries have high costs of education of
young people, young people leave the country after graduation, and those
countries lose benefits that these educated people could create. In this
case, we can talk about the negative impacts of labor migration, which
represents some economic loss for the country. It should also be noted
that this is a severe problem because the educated and highly skilled
population is a certain degree of success, prosperity for the country
and it is a reflection of certain level of countries (Czaika and de Haas
2013, Bilan 2012, Cajka et al. 2014).
Another negative impact for the country is the fact that the
leakage of highly qualified of a labor force abroad does not increase
the average level of qualification of the population in a given country,
but it supports the development of the country from which labor force
leaked. Leakage of the population for work can have a negative impact on
the demographic development of the country. The fact that many young
people leave to work abroad, it has a significant share of the
postponement of marriage and found a family in later age. Wage growth is
a positive as well negative side of labor migration, growth is a result
of the reduction of individual labor supply on the one hand, it affects
the growth of wages in a given country, but it causes an increase in
inequality, which has a negative impact on the labor market on the other
hand. The fact that many young people leave for jobs abroad can
sometimes have a positive effect on a given country, in the sense that
it does partially address the unemployment problem of the excess
workforce, and it also reduces social tensions in a given country.
Family reunification is often the consequence of labor migration, i.e.,
many people come abroad for their families that they have settled here
already and immigrant countries must grant them permanent residence in
this country (Divinsky 2011, Ortega and Peri 2013). Remittances are
another consequence of labor migration that affects the country in the
right direction. Financial remittances are revenues earned abroad,
which, residents sent or used in their country of origin. This income
sends from abroad to the country of origin influences and thus increases
the standard of living, social standards and purchasing power of the
population in this country. Social remittances are the no less important
role, i.e., those values, abilities, and skills that inhabitants acquire
abroad and then will bring to the country of origin (Sorokova 2010).
Worth to mention that the movement of people towards prosperous
economies can create networks that act as channels for
modernization--expatriates may put pressure on the government of origin
to increase accountability and improve governance (Anelli and Peri
2017).
2. Research methodology
Leakage of labor force abroad begins to be a severe problem for the
economy of the Slovak Republic. For this reason, we had set a
clarification of selected indicators as an objective in this study, and
indicators affect the decision to offer its labor force work in foreign
labor markets. Several methods are used in the paper - from comparative
analysis to the questionnaire and statistical methods. The method of
questionnaire was used to obtain the opinions of Slovak emigrants.
Emigration is the phenomenon that is the most difficult to estimate, the
sample surveys are the main source of emigration data today (Willekens
et al. 2017). Worth to mention that surveys may record emigration
intentions, but intentions are often not good predictors of behavior.
Despite this limitation, emigration research has often focused on
intentions rather than actual behavior (Dibeh et al. 2018). Sample
survey respondents were Slovaks, who have gone to work abroad in the
years 1998-2016. The survey was conducted in March to July 2016. The
survey sample was calculated using a 99% tolerance interval according to
the following formula (Pabedinskaite and Cincikaite 2016):
[mathematical expression not reproducible] (1)
where N- size of the population; [epsilon] - desired confidence
([epsilon] = 9%); p = q = 50% - probability that the event will
occur/will not occur; 99% of the normal distribution is within 2.58
standard deviations.
According to the data provided by the Statistics office, at the end
of 2016, there were 160.0 thousand emigrants in Slovakia. Basing on
formula (1), a required number of respondents is 205. A total of 250
questionnaires were distributed, completed and returned questionnaires
were 244. The rate of return was 98%. Respondents filled out the
questionnaire anonymously. The questionnaire was composed of 12 items,
of which one item was opened, two - closed with the simple choice
questions, one - closed with multiple choice answers. Eight items were
semi-open with the possibility to add their own answers. Each entry was
evaluated separately by gender of respondents, their age, educational
attainment, the residence of respondents in Slovakia and the year in
which respondents began to work abro ad. Additional answers were ranked
in order from most frequently occurring to least occurring and answers
were evaluated individually by all above-mentioned criteria in semi-open
items. We evaluated onlysome selected questions in our study. 113 (46%)
women and 131 (54%) men answered the survey. Most respondents were at
the age of 30-40 years (55% of all respondents), 59% were secondary
education, 41% with university education. Respondents were not recorded
under the age of 20 years and above 50 years.
We used the method of correlation for verification of some
dependencies. The correlation coefficient r represents the linear
dependence between two variables. We obtain the coefficient of
determination, with exponentiation of r, which represents the proportion
of common dispersion, so that is information about the strength of
relations between variables. The significance of correlation is basic
information about its reliabilities. The test of significance is based
on the assumption that the collocation of residual values for the
dependent variable y is normal, and the variability of these values is
the same for all values of the independent variable x.
The intensity of linkages between variables can be:
- r= [+ or -] 0,01 - 0,29 - no correlation
- r = [+ or -] 0,3 - 0,69 - weak correlation
- r= [+ or -]0,7-0,89 - moderate correlation
- r = [+ or -] 0,9 - 0,99 - strong correlation
We were counting the dependency ratio (correlation coefficient) by
using function CORREL in Microsoft Excel.
3. Results of the empirical analysis
The analysis was also focused on the structure of the respondents,
which we get in the questionnaire survey. People in the age group 30-40
years and secondary education formed the largest representation (see
Table 1). This age period is a period of building a career and
background in personal life. We assume that if they launch the careers
in the foreign labor market, so they will not think about returning to
Slovakia.
During the survey, respondents were asked to indicate the year they
started to work abroad. Migration for work is increasing, most
respondents left in 2015 (32 respondents, which is 13% of all
respondents), at least in 2001 and 2007 (1 respondent). The Figure 1
shows that the leakage to work abroad has decreased in the group of
respondents in 2016. The labor force starts to be a significant shortage
in the labor market in the Slovak Republic. It means that people should
not have a reason to go to work abroad.
We investigated the attractiveness of the target countries in which
respondents workin our survey (see Table 2). Most of them work in the UK
(nearly 21% of all respondents), at least in Canada and Sweden (both
with 3.69%). The United Kingdoms prospective withdrawal from the
European Union will change the orientation of migrants in this country.
Next question sought reasons for the choice of the country (see
Table 3). Respondents were allowed to select a maximum of two answers to
this question. Distance from the selected country to residence showed
the greatest influence in the selection of the country (53.70% of all
responses), at least the political stability of the country (4.32%).
Distance from the selected country to the residence is essential for
maintaining ties and relationships with the families of respondents,
with family members who stay in the Slovak Republic and it may also
indicate that respondents think about the return to their native
country.
For the above reason, we were interested in how long the
respondents are planning to spend time in the foreign labor market.
Nearly 26% of respondents said that they do not intend to return to
Slovakia (see Table 4). 23% of them plan their return under certain
conditions. 50.82% of respondents plan to return to Slovakia, if the
working environment will be improved in the country, nearly 30% of them
have other personal reasons. 8% of respondents want to return due to a
feeling of discrimination. Respondent not identified any possibility of
return due to the different culture, poorer housing conditions and the
implementation of less skilled labor.
The reason for returning to the home country is a very important
factor in the behavior of emigrants. We had found that 50% of
respondents mentioned the main reason as the improving the working
environment in Slovakia (see Table 5). It opens up new questions about
the price of labor, the number of contributions and the behavior of
employers to their employees. We will further examine the ideas of
respondents about the working environment in Slovakia.
Respondents had the opportunity to comment on how they are
satisfied with the work abroad. 77.40% of all respondents were
satisfied, and only 7% of respondents were rather unsatisfied, no one
was unsatisfied (see Table 6). We had found that this is mainly about
wages, which they compared with the Slovak market and the overall
working environment in the workplace. As well as the question above also
this issue will be subject to more detailed research in this area.
We examined the dependencybetween GDP growth and the departure time
of our respondents abroad in the next part of the study (see Table 7).
Even though GDP has a growing trend in the Slovak Republic, and we
assumed that GDP depends with leave of respondents to foreign countries,
the rate of dependence is at r= 0.706 moderately tight. We state that
correlation is significant between GDP and leave.
We examined the dependence of the growth of the minimum wage and
the number of leaves of our respondents abroad also. The minimum wage
has increased almost four times in the Slovak Republic since 1998, the
rate of dependency of leaves of respondents is moderately tight (r=
0.720). Despite the fact that we assumed the correlation between
variables of interest, we state that correlation is significant between
the minimum wage and leaves.
The average wage was another factor, which we had assumed that it
relates with leaving of respondents. Average wages grew by more than 2.5
times since 1998. Ratio of dependency is moderately tight (r = 0.742).
We state that the correlation is significant between the average wage
and leaves.
Regulation on minimum wage applies in Germany since 2015, with the
result that our employers had to equalize wages of workers operating in
Germany and they have to pay minimum 8.50 euro per hour. Institute of
minimum hourly wage implemented subsequently by other countries (e.g.,
France, Austria, Italy, Netherlands). We could focus on the impact of
these factors on the leaves of people abroad in the future.
Conclusions
Summing up the results of the theoretical analysis we define labor
migration as a movement of persons either temporarily or permanently
from the country of residence with the intent to carry out specific work
abroad. Migration is historically a social phenomenon that affects
politics, economics and social aspects of individual countries
significantly. The negative phenomenon of labor emigration is
deformation in the population structure of the native population.
Emigration may reduce the number of educated, engaged and dynamic
individuals in sending country and directly affect its productivity. The
noticeable deficit of qualified workers appears in some regions,
sectors, professions, deficit is mostly in the automotive, engineering,
electrical, construction, IT sectors, trade and services, health, as
well science and research. On the other hand, remittances, return
migration and brain gain are the benefits of this phenomenon.
The main aim of our research was to explore the reasons for
emigration to work from the Slovak Republic. In line with other
researches we state that the working environment (e.g., the price of
labor, the amount of contributions, and the behavior of employers to
their employees) is the core reason for emigration. Unskilled workers
leave their country most often because of low income or because they
cannot find suitable employment in the domestic labor market. Leave of
highly skilled labor force can affect the country significantly as
opposed to unskilled labor which the country can quickly replace. State
incurred significant costs on highly qualified workers, which they used
abroad and not at home then.
The Slovak Republic has one of the biggest dynamics of the aging
population in Europe, the outflow of labor force for work on foreign
labor market may deteriorate significantly above question. It is time
that government began to deal with specific issues not only at national
level but especially at the regional level. Among those issues are, as
it resulted from our study, as follows: satisfaction with work life, the
level of employment in the regions and wages as well as services to
citizens and their availability.
Many businesses have decided to employ foreigners because it is
convenient for them. Frequently foreigners represent cheaper and more
flexible labor force for the company. On the other hand, businesses are
aware that they will not gain a stable workforce by employing
foreigners. People come to other countries to obtain more favourable
employment in comparison with the domestic labor market, mainly for a
higher salary or also to get better professionalism and skills that they
will use on domestic labor market later. The labor market has started to
feel a significant labor shortage in all sectors in Slovakia in 2016.
For this reason the employment of foreigners becoming actual also. The
state would certainly be more beneficial to employ its citizens and
reduce the number of unemployment, and it also has a non-economic
context, especially social. It will be necessary to examine the
mentioned issues concerning various aspects of peoples lives, not just
with economic indicators.
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Adriana GRENCIKOVA (1), Ilona SKACKAUSKIENE (2), Jana SPANKOVA (3)
(1,3) Alexander Dubcek University of Trencin, Trencin, Slovakia
(2) Vilnius Gediminas Technical University, Vilnius, Lithuania
E-mails: (1) adriana.grencikova@tnuni.sk; (2)
ilona.skackauskiene@vgtu.lt (corresponding author); (3)
jana.spankova@tnuni.sk
Received 17 April 2018; accepted 23 October 2018
https://doi.org/10.3846/btp.2018.27
Caption: Figure 1. The number of respondents in the year in which
they started to work abroad (source: own processing)
Table 1. Structure of respondents by sex, age group and education
Charac- under 20 years old 20-30 years old 30-40 years old
teristics SE UNI SE UNI SE UNI
Men 0 0 37 8 28 36
Women 0 0 37 4 26 44
Total 0 0 74 12 54 80
Total 0 8 6 13 4
40-50 years old over 50 years old Total
SE UNI SE UNI SE UNI
Men 16 6 0 0 81 50
Women 0 0 0 0 63 50
Total 16 8 0 0 144 100
Total 24 0 244
(source: own processing)
SE - secondary education, UNI - university education
Table 2. The country in which respondents work
Country Number Per cent
Austria 24 9.84
Canada 9 3.69
Sweden 9 3.69
USA 16 6.56
UK 51 20.9
Netherlands 29 11.89
France 19 7.79
Switzerland 14 5.74
New South Wales (Australia) 19 7.79
New Zealand 13 5.33
Czech Republic 19 7.79
Germany 22 9.02
Total 244 100.00
(source: own processing)
Table 3. The factors affecting decision of the respondents in the
selection of the country
Factor Number Per cent
Political stability of the country 14 4.32
Economic strength of the country 62 19.14
Distance from the selected country 174 53.70
to residence
Social ties that are already abroad
(family, friends) 74 22.84
Other 0 0.00
Total 324 100.00
(source: own processing)
Table 4. Planned duration of stay abroad
Duration of stay abroad Number Per cent
A few months, maximum
of one year 39 15.98
One year to three years 25 10.25
Three to five years 23 9.43
Five to ten years 27 11.07
More than ten years 10 4.10
I do not plan to go back
on Slovakia 63 25.82
I returned to Slovakia,
if... 57 23.26
Total 244 100.00
(source: own processing)
Table 5. For what reason would you return to Slovakia?
Reason Number Per cent
Separation from family,
friends 39 15.98
Different culture 0 0.00
Worse housing
conditions 0 0.00
The perception of
discrimination 8 3.28
Improving the working
environment in Slovakia 124 50.82
Implementation of less
skilled labor abroad 0 0.00
Other personal reasons 73 29.92
Total 244 100.00
(source: own processing)
Table 6. Are you generally satisfied with the work abroad
(fulfilled your expectations)?
Unit of
Rather I cannot Rather
measu- Yes judge No Total
rement yes no
Number 114 75 38 17 0 244
Per cent 46.70 30.70 15.60 7.00 0.00 100
(source: own processing)
Table 7. Leaves of respondents, GDP of Slovakia, minimum and average
wage
The number of respondents who
n Year began working abroad in a given year
[x.sub.i] [x.sub.i] - x'
1 1998 4 -8.78
2 1999 4 -8.78
3 2000 8 -4.78
4 2001 2 -10.78
5 2002 15 2.22
6 2003 8 -4.78
7 2004 4 -8.78
8 2005 6 -6.78
9 2006 13 0.22
10 2007 2 -10.78
11 2008 4 -8.78
12 2009 10 -2.78
13 2010 17 4.22
14 2011 24 11.22
15 2012 26 13.22
16 2013 20 7.22
17 2014 31 18.22
18 2015 32 19.22
GDP of the SR Minimum wage
(mil. EUR) in SR* (EUR)
n [y.sub.i] [y.sub.i],-y' [y.sub.i] [y.sub.i]-y'
25 395 -28 180 99.6 -142.57
1 26 609 -26 966 114.5 -127.67
2 28 893 -24 682 136.1 -106.07
3 32 649 -20 926 149.5 -92.67
4 35 862 -17 713 168.7 -73.47
5 39 293 -14 282 189.1 -53.07
6 43 582 -9 993 205.3 -36.87
7 49 051 -4 524 219.1 -23.07
8 54 515 940 234.8 -7.37
9 62 186 8 611 256.4 14.23
10 66 439 12 864 268.9 26.73
11 64 571 10 996 295.5 53.33
12 67 062 13 487 307.7 65.53
13 69 302 15 727 317 74.83
14 71517 17 942 327.2 85.03
15 73 454 19 879 337.7 95.53
16 75 697 22 122 352 109.83
17 78 277 24 702 380 137.83
18
Average wage
in SR (EUR)
n [y.sub.i] [y.sub.i]-y'
332.04 -240.35
1 356.1 -216.29
2 379.41 -192.98
3 410.44 -161.95
4 448.48 -123.91
5 476.83 -95.56
6 525.29 -47.10
7 573.39 1.00
8 622.75 50.36
9 668.72 96.33
10 723.03 150.64
11 744.5 172.11
12 769 196.61
13 786 213.61
14 805 232.61
15 824 251.61
16 858 285.61
17 883 310.61
18
(source: Statistical Office of the SR (2013), own processing)
Please Note: Illustration(s) are not available due to copyright
restrictions.
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