Economic motives for migration of professionals to western Europe remain significant

Economic motives for professionals to migrate from the Czech Republic to selected western European countries (Austria, Germany, Ireland, UK) were analysed for 2000–2007. Despite the growth in the Czech economy, average salaries in western Europe stayed two to three times higher; the purchasing power parity of professionals’ salaries also remained higher. The motivation for migration became weaker, but differences in earnings continued to support the ‘brain drain’.

Background

The study entitled ‘Risk of possible outflow of highly-qualified professionals from the Czech Republic to other countries’, financed by the Ministry of Labour and Social Affairs of the Czech Republic (MoLSA), was carried out by the Research Institute for Labour and Social Affairs (Výzkumný ústav práce a sociálních věcí, RILSA) between 2000 and 2007.

The study presents an analysis of the economic motives for the migration of academically educated professionals from the Czech Republic and demonstrates that achieving a high salary is a major driver for the majority (80%–90%) of this group.

Countries considered attractive for Czech migrants were selected for the study – Austria and Germany for their geographical proximity, and Ireland and the United Kingdom (UK) for their open labour markets.

The analysis was carried out for four professions typical of the migration phenomenon:

• medical doctors (International Standard Classification of Occupations, ISCO-88: 2221);

• computer programmers (ISCO-88: 2132);

• mechanical engineers (ISCO-88: 2145);

• electronics engineers (ISCO-88: 2144).

Differences in earnings in comparison countries

Earnings levels in the Czech Republic and the countries chosen for comparison became closer between 2000 and 2007. The increase in average earnings in the Czech Republic was more dynamic, with the Czech koruna (CZK) strengthening against the currencies of the countries selected for comparison (by 28% against the euro and by 44% against the British pound (GBP)). However, differences in earnings remained significant despite the fact that relative price levels in the Czech Republic were growing faster.

The large differences in earnings remain when nominal average gross earnings are examined (Table 1); for example, in 2007 the average gross earnings in the UK were 5.4 times higher than in the Czech Republic. The differences in nominal net earnings, which reflect the levels of tax and insurance payments, are slightly lower, especially in the case of Austria and Germany.

This characteristic is significant particularly in the case of ‘commuting migration’ to neighbouring countries (Austria, Germany), when migrants work abroad but return daily or weekly to their country of origin, and where they spend most of their earnings. This type of labour migration is typical of craftspeople and workers with few qualifications, and exceptional for highly qualified professionals. The former group are therefore excluded from the analysis below.