Wired for stability: The role of infrastructure and Fintech in migrant employment
Abstract
Research background: Migration has become a pivotal factor in Slovakia's economic and social environment, particularly as the country faces labor shortages and an aging workforce. Ensuring employment stability for migrant workers is essential for sustaining economic productivity and addressing demographic challenges. Investments in infrastructure and fintech-based remittance services are increasingly seen as crucial in mitigating employment volatility.
Purpose of the article: This study examines the impact of investments in transportation, housing, and telecommunications infrastructure, along with fintech-based remittance services, on the employment stability of migrant workers in Slovakia. The research aims to identify strategies that promote job retention by addressing both structural and financial factors.
Methods: The study employs a panel dataset spanning 2013 to 2023, applying the System Generalized Method of Moments (GMM) estimator to mitigate endogeneity issues. Diagnostic tests, including AR(2) and Hansen tests, confirm the robustness and reliability of the model's results.
Findings & value added: Results indicate that investments in transportation and housing infrastructure exert the strongest positive influence on migrant employment stability. Telecommunications infrastructure also plays a meaningful role, albeit with a smaller effect. Fintech-based remittance services further enhance financial security, reduce economic stress, and improve job retention rates. These findings highlight the significance of combining physical, digital, and financial infrastructures to foster stable employment conditions. The study integrates insights from Human Capital and Social Integration theories, providing a comprehensive framework for understanding the mechanisms that support employment stability. The research offers valuable guidance for policymakers, emphasizing the need for targeted infrastructure investments and fintech solutions to improve labor market resilience and economic integration in Slovakia and similar Central and Eastern European economies.
Keywords
Employment stability, Infrastructure investment, Fintech-Based Remittance, Migrant Workers, System GMM Estimation
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