Belarusian Economic Research and Outreach Center

Open Lecture with Hanna Vakhitova

The open lecture of Hanna Vakhitova (Ph.D. in Economics from University of Kentucky), Assistant Professor at Kyiv School of Economics took place on the 14th of February in Belarusian State University, Economics Department, where she presented her research-in progress ‘How better working conditions affect migrant's remittances decision?”

Migration and remittances play an important role in world’s economy. More than 250 mln people or 3.4% of world population leave outside their country of birth. In 2015, remittances exceeded $581.6 billion, of which $431 billion were sent to developing countries (WB, 2015). Remittances exceed development aid and their flow is more stable than flow of private capital. The existing literature emphasizes the remittances’ contribution to reducing poverty and enhancing human development (Ratha, 2013).

This study investigates so far unexamined links between migrants’ working conditions and migrants’ remitting behavior. We make use of the unique opportunity offered by the migration module to the Moldova Labour Force Survey, 2012. The sample includes 790 salaried current and return migrants. Following ILO definition, we consider four type of working conditions: earnings, working hours, presence of the written contract and work-related benefits. Preliminary results suggest that all conditions except working hours affect remittances behavior.