Interconnections in the education–migration–labor market chain in Central and Eastern Europe
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DOIhttp://dx.doi.org/10.21511/ppm.22(4).2024.35
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Article InfoVolume 22 2024, Issue #4, pp. 470-486
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This study examines the interconnections between transformations in the education sphere, migrations waves, and labor market in 2000–2021 based on a panel data set for 14 Central and Eastern European countries (7 – former members of the Council for Mutual Economic Assistance; 5 – former republics of the USSR, and 2 – former republics of Yugoslavia). Statistical data were collected from the World Bank, the Organisation for Economic Cooperation and Development, and the International Labour Organization databases. To describe this interconnection, a pool of parameters was formed. Those that cause the greatest variability were selected using exploratory factor analysis: for education – the number of teachers and students in higher education and public spending on education; for migration – the net migration flow, personal remittances sent and received; for labor market –unemployment rate and the share of highly educated people among the employed. Confirmatory factor analysis identified the most influential determinants: for education – the number of students in higher education; for migration – paid personal remittances; for labor market – unemployment rate. The covariance analysis demonstrated a robust direct correlation between education and migration (positive shifts in the education sector serve as a catalyst for pursuing superior employment opportunities or continuing education abroad). A relatively weak direct correlation was between education and the labor market (a more highly educated workforce has only a limited impact on the structure and dynamics of the labor market). Finally, a moderate inverse correlation was between migration and the labor market (deteriorating labor market conditions give rise to migration waves).
Acknowledgment
This study is funded in terms of the projects “Business-Education-Science” Coopetition: Institutional and Economic Models of Innovation Transfer for National Security and Sustainable Development (№ 0122U000772) and “Modelling educational transformations in wartime to preserve the intellectual capital and innovative potential of Ukraine” (№0123U100114).
- Keywords
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JEL Classification (Paper profile tab)I21, O15, J01
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References59
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Tables7
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Figures2
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- Figure 1. Schematic delineation of the model for analyzing the interconnections in the education–migration–labor market chain
- Figure 2. Effective model specification for determining the interconnections in the education–migration–labor market chain
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- Table 1. Set of the countries in the study’s sample
- Table 2. The data for analyzing socio-economic transformations in the education–migration–labor market chain
- Table 3. The selection of the most relevant indicators for each component of the education–migration–labor market chain using exploratory factor analysis (EFA)
- Table 4. Characteristics the interconnections in the education–migration–labor market chain
- Table 5. Variation in the interconnections in the education–migration–labor market chain
- Table 6. Covariance of the interconnections in the education–migration–labor market chain
- Table 7. The interconnections in the education–migration–labor market chain
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