¹1 (19) 2013
Demography and social economy, 2013, 1(19):120-131
doi: https://doi.org/10.15407/dse2013.01.120
Î.À. Malynovska, ².P. Maidanik
REMMITANCES OF UKRAINIAN LABOR MIGRANTS:
FACTORS, CHANNELS, USE
Section: Labour market problems.
Language: Ukrainian
Abstract: Remittances are a factor of a significant importance for the Ukrainian economy. However, the investment use
of remittances remains a serious problem for Ukraine; its solution is inhibited by improper state of scientific
research in the field of migration. Based on the research of Ukrainian labor migrants working in a number
of EU countries (Czech Republic, Poland, Portugal, Spain, Italy, Greece, France), the article examines the
factors that determine the amount of remittances sent by migrant workers to Ukraine, channels of money
transfers, the structure of remittance expenditure.
The main factor which determines the amount of transferred money is wages of Ukrainians abroad.
Migrants’ earnings, on average, are equal 727.9 euro per month. However, migrants’ wages vary depending on
host countries and the nature of performed work. The highest wages – nearly a thousand euros per month –
are earned by builders, and industrial workers earn almost as much. Wages in agriculture are small. In different host countries wages are not the same. High wages (around one thousand euros), according to the
answers of the respondents, are in France, the lowest wages are in Poland (460 euros).
A certain part of the money earned abroad is spent on consumption by migrants in the host countries.
According to the data obtained during the survey, it is an average 55%. However, the range of answers to
this question is wide: from 20 to 100%.
Today, most of migrant workers – 76.3% – transfer money to Ukraine. Men make remittances more
often than women (77.6% and 69.7% respectively). Using the information about the frequency of transfers
(about 7 transfers per year for each migrant), it can be assumed that on average, one migrant sends home
3.3 thousand euros annually.
Ukrainian migrants in the EU most often use international payment systems for remittances. Informal
channels of money transfers – through friends, acquaintances, and other couriers – are second in popularity
followed by personal transfer of money during visits home.
Migrants’ parents were the most often beneficiaries of remittances, 66.3% of respondents sending
money home forwarded money to them. 26.6% provide financial support for their children, 19.9% – for
sisters and brothers. 15.4% of migrants send money to their spouses.
The low standard of living of the population of Ukraine leads to the fact that remittances sent by migrant
workers from abroad are often spent on daily consumption (food, clothes, public utilities payment).
It is alarming that a large group of Ukrainian migrants prefer to spend their money earned abroad in
countries of employment. For example, one third of respondents who buy real estate do so abroad, and
nearly half of potential entrepreneurs do not associate their plans to open a business with Ukraine, the
majority of savings are also accumulated abroad.
Thus, the amount of cash inflows in Ukraine from migrant workers in EU is significant; however the
biggest part of money earned by them remains in the host countries. It is possible, that the extension of the
migrants’ stay duration and family reunification abroad will tend to reduce the amount of remittances in
the future. Because of migrants’ distrust of the Ukrainian financial institutions and of the government as
the guarantor of citizens’ property rights, part of migrants are already saving money, buying real estate not
at home but in the host countries, even despite of the serious crisis in foreign economies.
Key words: labor migration, remittances, remittances channels.
References:
1. Çîâí³øíÿ òðóäîâà ì³ãðàö³ÿ íàñåëåííÿ Óêðà¿íè. – Ê., 2009. – 118 ñ.
2. ̳ãðàö³éí³ ïðîöåñè â Óêðà¿í³: ñó÷àñíèé ñòàí ³ ïåðñïåêòèâè. / Çà ðåä. Î.Â. Ïîçíÿêà. – Óìàíü, 2007. – 276 ñ.
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