Employment Protection, Employers’ Hiring Strategies and the Screening Role of Temporary Contracts

Labour migration across countries has been playing a key role in the process of economic integration in the countries of the Commonwealth of Independent States (CIS). The experience of labour migration in CIS appears to be characterized by growing complexity with an increasingly diverse array of countries of origin and destination. The main issues of this paper are: 1) to understand how wage dynamics defined by the labour demand/supply ratio feeds back to migration dynamics, which affects the migration flows between sending and receiving countries over time; 2) to explore how the age structure affects migration flow which in turn effects labour supply in the host country; and 3) to project the potential future migration flow and its impacts on surplus and deficit of labour resource, in order to provide the relevant for migration policies at the both national and regional levels. In this paper we analyse these issues within a dynamic framework; we consider migrant flow into a host region/country at certain moments of time depending on the relationship between expected earnings, costs, and age structure. In addition, we also consider how migration flows interact with natural population growth and age structure in sending and hosting countries.