Impact of Regional Economic Development on Migration Processes

INTRODUCTIONMigration processes and their intensity is determined by a number of parameters which are the characteristics of a national economic system as a whole. Considering the processes of migration it is necessary to account for the characteristics of inequality, poverty, and formation of the level of wages in the corresponding territory. Furthermore, opportunities of regions themselves within the frameworks of effective development, and existing benefits of the territory are sufficient to enhance the migration flow.When analyzing the migration processes, it is necessary to focus also on the features of the labor market in different countries. These features, and as a consequence, differences in wages and real incomes have become one of the basic reasons for intensification of the migration process. When considering the labor market it is necessary to take into account that the wages is not only a parameter that reflects the characteristics of labor supply and labor demand, but also one of the most important parameters which determine the significant characteristics of an individual. Wages actually reflects the status, job prestige value, and social characteristics of an individual. When analyzing wages it is possible also to identify the availability of a relationship between wages and the rate of individual success (his/her career and professional status).Based on the foregoing, it can be argued that the organization is not entirely free in determining an employee's wages. For example, if an organization seeks to attract employees without professional skills, in this case the involvement by increasing wages will cause a violation of the social bonds between the professional status of a worker and remuneration, and, in turn, will have an impact on wages of more skilled workers (Askhatova et al., 2013).THEORYThe efficiency of workers is a direct function of the wages. Raising wages is necessary for several reasons:- By virtue of the fact that an organization incurs certain expenses on the best training of an employee to work at his/her workplace,- By virtue of the fact that the best product on the market (and the best specialist, respectively) is always in high demand,- Due to the fact that it is necessary to solve the problems of asymmetric information in the labor market where an employee is always more aware of his/her abilities than his/her employer.All these reasons stimulate the increase in wages in a market economy, but, as a consequence, employers have to increase in proportion the wages in the entire structure of the qualification hierarchy of the organization. Such a method of attracting labor force in the economy with insufficient labor supply has high economic costs, so the organization can choose to hire foreign workers able to work for lower wages.Thus it can be argued that the problems of formation of an effective wage is also one of the causes contributing to changes in the intensity of the migration process. Since wages in developed countries appears frequently not only as a source of income, as well as a source of formation of the social status, the problems of motivation in organizations within the frameworks of attraction of labor forces (including foreign one) are formed already at the basic level of the labor market.In turn, low-skilled workers actually need wages as the only source of income without any need for formation and development of their social status.We can assume the following main causes of migration in this case:1) the difference between wages and unemployment in countries,2) individual characteristics of the human capital what increase the chance of finding a job and increase the value of income received.In this case, we'll assume that the total value of the migration is the sum of all individual migrations and the fact that the decision to migrate is influenced by quantities characterizing the labor market (Bagautdinova et al. …