Assessment of the Impact of Income Inequality on Population’s Migration

Abstract

. Income inequality and population’s migration are economic processes ongoing in every country, but their scales are different. Although both phenomena – income inequality and population’s migration – earn sufficient scientific attention, scientific literature is still lacking comprehensive studies on interdependence between them. This research is aimed at the assessment of the impact of income inequality on population’s migration. This article highlights how significant it is to assess the impact of income inequality on population’s migration, and reviews the issues of income inequality and population’s migration previously analysed in scientific studies. The research is based on the methodology developed for the EU Member States. The paper provides original perspective as the EU Member States are divided into six groups by their income inequality and net migration rates and the impact of income inequality on population’s migration is researched in particular groups of the current EU Member States by applying the methods of correlation and regression analysis. The results of the research indicate that the impact of income inequality on population’s migration differs within and between the EU Member State groups. Research results revealed that, income inequality has a more significant impact on population’s immigration than on emigration in all EU Member State groups. Income inequality causes population’s emigration only in the states with medium income inequality rates. The paper contributes to the scientific literature of regional development as the quantitative analysis of the interconnection between income inequality and population’s migration is scarce.

Population Forecast with Focus on Emigration: Scenarios for the Case of Peripheral Region

“…Moreover, Staniscia and Benassi (2018) in their research indicate that personal income and factors, which affect quality of life, are more relevant for explaining emigration than regional GDP. There are several factors, which encourage emigration: depopulation, population density, population dispersion, accessibility, mobility, rurality (Camarero & Oliva, 2019), employment, minimal monthly wages, income inequality (Laskiene, Zykiene, & Verdnikovaite, 2020), brain drain (Maleszyk, 2021), homeownership (Palomares-Linares & van Ham, 2020). Effects of emigration for peripheral regions mostly are negative as far as such areas lost human capital and thus strengthen their peripheral characteristics.…”

“…Effects of emigration for peripheral regions mostly are negative as far as such areas lost human capital and thus strengthen their peripheral characteristics. These effects are: continuing depopulation, demographic imbalance, territorial disadvantage (Camarero & Oliva, 2019), "brain waste" (Laskiene, Zykiene, & Verdnikovaite, 2020;Maleszyk, 2021), low economic development level. Special attention scientists pay to emigration of the young population (Camarero & Oliva, 2019).…”

“…Another process, which is topical for the peripheral regions, is so called "brain waste". Laskiene, Zykiene, & Verdnikovaite (2020) in their research mention that emigration of welleducated population due to economic reasons for employment in lower qualified positions is waste of human capital, i.e., brain waste, for the region-donor. The way to address the issues of peripheral regions is realization of appropriate regional development policies.…”

“…For example, Scandinavia and UK demonstrate approach of strong investments in high education in peripheral regions during long time (Davies & Michie, 2011). Decline of population due to economic reasons is highlighted in research (e.g., Laskiene, Zykiene, & Verdnikovaite, 2020). Countries practice to establish public-sector agencies in peripheral regions for development of SME and attracting funding (Davies & Michie, 2011).…”

“…There are some common factors, which stimulate emigration at regional leveldepopulation, low population density or high dispersion of population, accessibility of territory, availability of daily services, and possibilities to be mobile (Camarero & Oliva, 2019), income inequality and low level of monthly wages (Laskiene, Zykiene, & Verdnikovaite, 2020), brain drain and brain exchange (Maleszyk, 2021), homeownership (Palomares-Linares & van Ham, 2020). The most of these characteristics may be addressed and improved through regional development policies (e.g., Davies & Michie, 2011).…”