The article gives an overview of human well-being environmental factors of “being protected”: “productivity of labor”, “workforce” and “education level”. Authors introduce an additional factor related to spiritual values, psychological and emotional components – “openness to the world”. The aim of this study is the identification of migration possible effects on the economy of the host region of the country. Authors emphasize on the factor “openness to the world”. It is through this factor it is possible to eliminate the contradiction of duplex link between, on the one hand, the influence of globalization processes on society and, on the other hand, maintaining the state of “being protected”. The factor of “openness to the world” can be assessed according to such criteria as: orientation in time; the value; nature; need for knowledge. Through the factors outlined above the article presents that there is an evaluation of the spiritual-axiological, psychological and emotional spheres, which allows modeling the image of well-being environment that are relevant to the given socio-cultural conditions. Authors conclude the interdependence nature of migration processes generated and supported by the globalization. The article points that the identified factor “openness to the world” in the context of well-being environment contributes to the optimization of the resource base of the country. Also it defines the profit of education, oriented to self-realization, allow for a new round of economic growth, not only within the region, but whole country as well, due to the multiplier effect.
Keywords: Human well-being environmental factors“being protected” statefactor of “openness to the world”host communityforeign migrants
The general globalization trend and the information society give rise to a situation of “open world” associated with the exchange of resources (human, financial, intellectual, spiritual and value, etc.). In this context the problem of migration as a source of social chaos and potential barriers of society welfare is studied and it needs to be updated. Recently increased mass migration is a relatively new for Russia and CIS countries mobility type, which is due, firstly, significant changes in market conditions in an unstable economic situation, and secondly, the destruction of the old areas of employment in the post-Soviet Union space.
In modern literature (Barysheva et al, 2016; Berestneva et al, 2015) we see the tendency to define well-being as multi-aspect and complex concept that includes different components: financial, economic, political, legal, spiritual and value, psychological and emotional.
The direction of migration flows in the various regions of Russia is determined by the economic cut of domestic industries. In addition, for successful and optimal development of their potential humans need to feel “protected”, not only in administrative and legal way, but also in the psychological and emotional sense. That is, some certain conditions to facilitate the integration of migrants into the host society are necessary and identifying the fundamental human well-being environmental factors as well.
Subject and methods of research
In this connection, the aim of this study is the identification of migration possible effects on the economy of the host region of the country. In the specific case we give attention to the economy of Tomsk region. As the definition of human well-being environmental factors have been identified the following factors of “being protected” – “productivity of labor”, “workforce”, “education level”. In addition, the authors introduce an additional factor related to spiritual values, psychological and emotional components – “openness to the world”, characterized by the pursuit of harmonious being and interpersonal relations (Pokrovskaya et al, 2015). The authors consider this factor as system-forming determinants of social well-being. Research base was formed by the methods of quantitative and qualitative analysis, structure-genetic synthesis method and the PIL (“Purpose-in-life” test) by D. A. Leontiev.
Results and discussion
Consider the above mentioned factors consistently. The first factor is the impact of migration on the economy of the Tomsk region that is to increase or decrease performance (efficiency) of labor in the region, and as a consequence an increase or a decrease in aggregate output production. On the basis of statistical data of socio-psychological research carried out in the framework of this project on the basis of the Tomsk State University of Control Systems and Radioelectronics (TUSUR), the level of productivity among workers who feel “protected” and therefore more confident in themselves, know their needs and opportunities, is higher than the level of forced migrants, and sometimes illegal migrants (Pokrovskaya, 2015).
In turn, the level of performance of each individual migrant as an employee of the company affects the average aggregate productivity of employees. Increase (decrease) the average aggregate productivity allows reaching (not reaching) the same volume of production with a smaller (larger) amount of required labor resources, which also leads to an increase (decrease) the efficiency of production.
The negative moment in this case may be a reduction in the money supply in the country due to the care part of migrants' incomes in their home to help relatives (Varshaver, & Rocheva, 2014). Thus, it may be a risk that the amount of financial resources that could potentially be invested in the development of the state economy will be reduced. The total effect on the economy of the Tomsk region will depend on the influence of those and other consequences.
Consider what will happen to productivity, if forced migrants will do the work, not adapted to local environmental conditions of the host region.
It should be noted that due to the lack of the necessary skills and confidence in this group of migrants, there is a low level of productivity, employers often refuse employment for this group of persons, or offer low salaries. Due to these immigrants is ascertaining the growth of unemployment in the region and, in general, across the country. This, in turn, forces the state to develop additional social programs to support this group of migrants. In this case the increase in government spending in fact has only postponed portion of the government investments in other sectors, i.e. does not lead to GDP growth in accordance with (1):
Y – total real output;
C – expenditures of population;
I – investments;
G – government spending;
Xn – net exports.
The second factor is the impact of migration on the economy of the Tomsk region will be to increase the size of the labor force in the region. This will have an impact on the structure of the population that will become more balanced, as well as the structure of expenditures and the state revenues by reducing pension benefits and increasing revenues from income tax.
It should be noted that the Concept – 2020, developed by the government of the Russian Federation, assumes an average annual growth of GDP in the years 2011-2020 6.3–6.4 %, equivalent to doubling the GDP in 10 years (The concept of long-term socio-economic development of the Russian Federation for the period until 2020, 2008). However, in Russia there is a lack of economically active population for the task.
It is well known that the shortage of workers can be filled in three ways – migrants, the growth of labour productivity and the extension of the working time, i.e. when the same number of people will work more as a banal increase of the working day and enlarging the retirement age and by reducing disease and mortality. The third way is unlikely to help, because it will be the effect of the planned increase in the retirement age, is unclear. For people with their current state of health will no longer be. At least, the research school of management SKOLKOVO (Wilson, 2010) suggests that in recent years only about 2 % of economic growth was provided by increase in human capital (i.e. improve health, education, etc.).
In addition it should be noted that in Russia up to 2012, there was a natural population decline, which averaged 0.5% per year, and only since 2013, there has been a natural increase, averaging 0.2 percent per year (The report “Births, deaths and natural increase”. Federal service of state statistics, 2015).
Natural population growth in 2014 for the Tomsk region amounted to 1,91 %, which is higher than in 2013, an increase of 0.26 %. According to statistics, this growth was achieved primarily due to the growth in the number of migrants in the region (Materials and documents on the draft budget of Tomsk oblast for 2015-2017. Part I. The Tomsk region Administration, 2014).
It should also be emphasized that, in the Tomsk region there is a lack of workforce appropriate to the needs of the economy that is evidenced by the data of the Tomsk regional Committee of state statistics on the enterprises’ applications number in the public institutions of the employment service.
In this case the Tomsk region is attractive to migrants, because migrants prefer regions with low unemployment, as well as regions with high population density. Thus, migrants tend largely to those regions where a sufficiently high level of economic activity and average income per capita. Also climatic conditions influence on the migrants’ choice, region needs in labor resources, region prospectivity for further accommodation.
For Russia as a whole, and for the Tomsk region in particular, labour shortages are also very much linked to the imbalance of the economic structure and the structure of available labour force. That is why the involvement in the regions of foreign workers that match the needs of Economics majors and skill level, can also help Russia to solve one of the long set of tasks to modernize the economy.
Moreover, the Russian experience shows that the highest productivity growth is observed in those industries where increasingly involved in migrant labour, for example, construction, trade, transport and communications.
It would be better to note that besides the above-mentioned factors may change the rates of wages and increase labour supply, which will trigger the following two scenarios of labour market development in the Tomsk region:
in those industries where demand for labor exceeds the supply, employment and therefore output and industry revenue will increase;
in sectors with full employment will experience a substitution of domestic for foreign labor resources, since the reduction in wages of the currently employed will leave and in their place will come the migrants are willing to work for less pay. In this situation, there will be increasing income sector and increasing its competitiveness by reducing costs, but it can have a negative impact on GDP growth due to the increase in the number of unemployed (Vinokurov, 2012). According to economists such as F. Ortega and G. Perry, immigration leads rather to proportional to GDP growth by increasing total employment (Perry, 1978).
However, it is impossible to agree with this statement: the nature of the workforce coming from abroad, and meets unmet needs of the state's economy. Strict compliance of the structure of the flow of migrants to the needs of the economy is possible, perhaps, only in two cases:
if the world labour market operates in accordance with the assumptions of perfect knowledge of all market participants, the lack of barriers, etc., i.e. has all the characteristics of perfect competition market;
if the volume and structure of migration flows is specified (approved/stimulated) by the host state.
Thus, in case of created conditions unleashing the potential of migrants in the context of the social well-being environment, taking into account values, psychological and emotional elements as aspects of “being protected”, as the foundation of successful integration, migrant-worker would be the most optimal to meet the needs of the host region's economy than the one that originally deprived of such conditions.
The third factor is the “level of education” is closely linked to the phenomenon of “educational externalities” that are possible when migrants’ engaging in the region from the point of view of human capital. For many years scientists have conducted theoretical and empirical research aimed at proof of the existence of educational externalities. In the economic literature on the issue of educational externalities both levels of research: microeconomic and macroeconomic are presented, although to a different extent.
In the analysis of externalities at the micro-level it is usually assumed that the increase in labor productivity of one group of workers (in our case migrants) can bring benefits to other workers, in particular those associated with the first single technological chain. The increase in the quality of the final product, driven by investment in human capital, resulting in an increase of the company's profits effect on income not only more qualified personnel, but other employees of the company. In particular, workers with less human capital stock can receive extra profits, if the more educated and confident employees use their skills and knowledge to develop and apply advanced technologies that will be used by the rest of the staff.
At the macroeconomic level, in addition to the study of the direct effect of education on economic growth, we study the effect mediated impact on fertility and quality of medical care.
The stock of human capital available in the country (region), including at the expense of attracted migrants, has a great influence on economic growth, and hence the level of income of all categories of employees. This influence is performed by different channels.
First, the value of human capital while determining the productivity of employees, affects the volume of production.
Secondly, education can two ways to participate in the production of new ideas that will be used in future production to increase productivity and introduction of new products and technologies: to produce them directly in the educational and research process in universities, or serve as the most important factor in the production of innovation in the research sector.
Thirdly, the level of education of workers, affecting the quality and health structure through the formation of the corresponding demand, increases productivity and economic growth.
The presence of a certain stock of human capital in the country (region) affects the degree of its receptivity to innovations not only in relation to developed economies, but also those that are lagging behind in the capacity to generate new technologies and products. Due to the existence of spillovers of new ideas from one country to another, some countries, creating new technologies and carrying costs of their production, have the opportunity for their use. The result of the “free” use of innovations is to reduce the gap in economic development between developing and developed countries. The efficiency of innovations in the countries that they do not create but only imitate, depends on the stock of human capital they possess. Therefore, in countries with a large stock of human capital total factor productivity grows faster. Therefore, in order for the country to receive and use revenues from technology transfer requires a certain threshold level of education.
To conclude the study of determining the conditions of forming well-being environment, the authors emphasize on the factor “openness to the world”. It is through this factor it is possible to eliminate the contradiction duplex link between, on the one hand, the influence of globalization processes on society and, on the other hand, maintaining the state of “being protected”.
Consider the factor of “openness to the world” according to the following criteria:
orientation in time;
need for knowledge.
Through the factors outlined above there is an evaluation of the spiritual-axiological, psychological and emotional spheres, which allows to model the image of well-being environment that are relevant to the given socio-cultural conditions.
The data presented (Fig.1) describe the attitude of the host community representatives and foreign migrants’ representatives. They identify similar characteristics of importance in terms of “nature” (given in the model of “being protected”) and the obvious contradiction in terms of “the value” (the threat for the model of “being protected”). These indicators according to the methodology of PIL (“Purpose-in-life” test) by D. A. Leontiev identified positive load significance. It should be noted that the indicators of “time perspective” and “need for knowledge” did not overcome the significance threshold and can be attributed to the group of peripheral factors that play a role socio-cultural background.
Thus, based on the mentioned above, we can conclude that:
migration processes generated and supported by the globalization are in the nature of interdependence;
the identified factor “openness to the world” in the context of well-being environment contributes to the optimization of the resource base of the country;
education, oriented to self-realization, allow for a new round of economic growth, not only within the region, but whole country as well, due to the multiplier effect.
The authors expresses his sincere gratitude to Tomsk Polytechnic University for the opportunity to take part in such a scientific research forum.
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17 January 2017
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Pokrovskaya, . M., & Raitina, М. Y. (2017). The Analysis of Human Well-being Environmental Factors in the Context of Migration Processes. In F. Casati, G. А. Barysheva, & W. Krieger (Eds.), Lifelong Wellbeing in the World - WELLSO 2016, vol 19. European Proceedings of Social and Behavioural Sciences (pp. 586-592). Future Academy. https://doi.org/10.15405/epsbs.2017.01.79