The impact of non-cognitive skills and risk preferences on rural-to-urban migration in Ukraine

This paper provides evidence on the impact of non-cognitive skills and attitudes towards risk on the decision to migrate from rural to urban areas. Our analysis is based on a unique four-wave panel of the Ukrainian Longitudinal Monitoring Survey for the period between 2003 and 2012. Adopting the Five Factor Model of personality structure, and using it in the evaluation of non-cognitive skills, our results suggest that the personality trait openness to new experience increases the probability of migration. On the other hand, the non-cognitive skills conscientiousness and agreeableness are found to be negatively associated with the propensity to migrate. The impact of an increased willingness to take risks is more complex in that it increases the proclivity to move from rural areas to cities but lowers the migration intention from rural areas to towns. The effects are quantitatively significant and are robust to several sensitivity checks, including tests of reverse causality.