Publication: In Search of Opportunities : How a More Mobile Workforce Can Propel Ukraine’s Prosperity (Vol. 1 of 2) : Summary Report
Date
2012-05
ISSN
Published
2012-05
Author(s)
World Bank
Abstract
Ukrainians do not move often, and when
they do move, they don't necessarily go to areas with
good jobs and high wages. Internal mobility is about half of
what is expected when comparing Ukraine with other
countries. The lack of mobility is remarkable, given the
availability of more jobs and better wages in several
Ukrainian cities. Too few people are taking advantage of
economic opportunities, and as a result, Ukraine's
structural transformation has stalled. This is a sharp
contrast to many other countries in Eastern Europe, where
the transition to a market economy has been accompanied by a
shift from widely-dispersed industries to a concentration of
capital and production in a few areas, and from low- to
higher-productivity sectors. Labor has largely mirrored the
movement of capital and production. In Ukraine, however,
labor is not flowing as smoothly to areas of high
production. This report examines the mobility of workers
inside Ukraine and their willingness to physically relocate
from one area or region to another in search of better
economic opportunities. The report explores the patterns and
trends of labor mobility in Ukraine as well as the drivers
and constraints of that mobility, and derives policy
implications from its findings. Second chapter of this
volume offers evidence of how a mobile workforce benefits
the economy. It shows how the economic transition in most of
Eastern Europe has been accompanied by the significant
concentration of capital and people in a few areas. This has
not happened to the same extent in Ukraine. Third chapter
shows that what little migration we see in Ukraine is not
necessarily going to the leading regions. For internal
migration to lead to growth and better living standards,
workers have to move to the areas of the country where
productivity and therefore, wages are high, and where
unemployment is low. Third chapter more over examines the
factors that prevent Ukrainians from moving. Fourth chapter
offers recommendations for creating greater labor mobility
in Ukraine. It explains how addressing the institutional
bottlenecks that affect internal mobility will allow more
people, especially the poor, to access better jobs,
accelerating growth and enabling living standards to rise.
Citation
“World Bank. 2012. In Search of Opportunities : How a More Mobile Workforce Can Propel Ukraine’s Prosperity (Vol. 1 of 2) : Summary Report. © Washington, DC. http://openknowledge.worldbank.org/entities/publication/e5482f21-3e69-595f-bd06-d98d6ce15a48 License: CC BY 3.0 IGO.”