his article provides the first comparable cross-country empirical evidence on labour
migration from the South Caucasus, based on a well-designed household survey from
Armenia, Azerbaijan and Georgia. It quantifies recent emigration flows and provides
preliminary evidence on the economic consequences of migration for the region.
Results show that the most common destination for South Caucasian migrants is Russia
and that the most common purpose of migration is to work abroad. An analysis of the
demographic and socio-economic determinants of migration reveals that the migration
flows do not involve mass emigration of skilled labour. However, this result is probably
due to the relatively high cost of emigration to high-income countries. While
individuals with higher education are not more likely to become migrants in general,
having higher education is associated with up to four times higher probability of
migration to a high-income OECD country among Armenians and Georgians. The
results are in line with theoretical arguments that skill distribution and returns to
education in the host country relative to the home country affect the selection of
migrants, and that the cost of migration plays an important role in the migration
decision. Further analysis suggests that migration indirectly boosts economic
development in the South Caucasus by raising local incomes and demand. I also find
a significant correlation between having a migrant and running a family business in
Armenia, which suggests that migrants’ earnings can provide scarce capital for
business investment and support the development of the private sector in the region.