Demography and social economy, 2012, 2(18):74-84
doi: https://doi.org/10.15407/dse2012.02.074

POZNIAK O.V.,
Ph.D., Ptoukha Institute for demography and social studies of the National Academy of Sciences of Ukraine
TERESHCHENKO G.І.
Ph.D., Ptoukha Institute for demography and social studies of the National Academy of Sciences of Ukraine

COMPLEX ESTIMATION OF MIGRANT WORKERS INCOMES AND REMITTANCES
Section: Living standard and quality of life.
Language: Ukrainian
Abstract: The article deals with a complex technique for estimating migrant workers’ incomes which is based on the use of direct and indirect methods. The proposed approach lies on estimating and balancing the migrants’ remittance inflows from their inception to their final destination deriving data from various sources. At that the following basic elements are estimated: the volume of earnings of Ukrainian labor migrants abroad, the amount of transfers, and the volume of migrants’ financial support of their families who stayed at home.
The complex technique consolidates the valuations resulting from six different methods. The earnings estimates of migrant workers’ by the first method, on the one hand is based on data on the number of Ukrainian labour migrants and their residence and job allocation received from National Migration Survey of the Ukraine Population of 2008 (hereinafter MS) as well as the average period of employment of representatives of each of the selected category of labour migrants.On the other hand ILO and Eurostat information concerning the level of wages in the countries- recipients (by certain activities) and expert judgment on Ukrainian citizens’ and local residents’ salary ratio is used. The second method consists of adjusting the results of the first method to the share of migrants who were remitting their money to their families in Ukraine. The proportion of migrants who were remitting their money is derived from MS data.
The third method of estimating migrant workers’ income is based on the data of the National Bank of Ukraine (NBU) on the volume of remittances made through official channels and the assessment of formal and informal remittance rate which is obtained from MS. The fourth method considers the number of person-months worked by migrants abroad, and MS data on the share of migrants who were remitting their money to their families in Ukraine. Also the forth method uses data on the frequency and amount of remittances which is derived from interviewing of migrant workers’ children of conducted by the Department of Migration Studies of Ptoukha Institute for Demography and Social Studies in the fall of 2010.
The fifth method is based on Statistical Matching Procedure of State Household Budget Survey (hereinafter – HBS) data and MS data. The proposed approach foresees the implementation of two phases. In the first phase, the procedure of statistical matching of HBS and MS data is conducted at the micro (i. e. household) level. To do this a model is built on the basis of MS data which makes it possible to identify potential recipients of labor migrants’ remittances from HBS. In the second phase, the income of households which are potential beneficiaries is revalued considering remittances.
Calculation of the volume of migrants’ remittances on the basis of the sixth method involves the use of data on household incomes in Ukraine and household incomes in the countries of residence of migrant workers (the information is derived from the HBS, MS and statistical data on the people’s income in the countries of residence of migrant workers). Based on this method, the amount of the average monthly remittance of one Ukrainian migrant (e.g. from the Russian Federation) equals the average income in Ukraine which he could obtain if he stayed at home, plus the difference between the average income in Ukraine and in Russia, powered to the 0,75.
Worked example of the complex technique for estimating migrant workers incomes allows to improve the accuracy of Ukraine external account and to identify the potential volume of investments into the country’s economy.
Key words: migration, labor migration, income of migrant workers, remittances, sample surveys.
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