Migrants’ well-being during the global financial crisis: Economic and social predictors |
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Authors: | Alexander M Danzer Barbara Dietz |
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Institution: | 1. Department of Economics, KU Eichstätt-Ingolstadt, Auf der Schanz 49, 85049 Ingolstadt, Germany;2. CESifo Munich, Poschingerstr. 5, 81679 München, Germany;3. CReAM, UCL London, Department of Economics, Drayton House, 30 Gordon Street, London WC1H 0AX, UK;4. IOS Regensburg, Landshuter Str. 4, 93047 Regensburg, Germany;5. IZA Bonn, Schaumburg-Lippe-Straße 5-9, 53113 Bonn, Germany |
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Abstract: | This paper investigates the economic and social predictors affecting the well-being of temporary migrants before, during and after the financial crisis. Exploiting unique panel data which cover migration spells from Tajikistan to Russia between 2001 and 2011, we find that migrants earn less but stay longer in the destination during the crisis; at the same time, they become more exposed to illegal work relations, harassment and deportation through the Russian authorities. The overall income loss can be attributed to wage cuts and to rising illegal employment that is generally poorly paid. Despite the similarities in the demographics and jobs of migrant workers, we find substantial heterogeneity in how the financial crisis affects their well-being. Migrants who experience wage losses during the crisis rationally stop migrating. |
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Keywords: | J15 J46 O15 Financial crisis Immigrant worker Illegal employment Harassment Wages Russia |
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