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Economic impact of migration flows following the 2004 EU enlargement process - A model based analysis

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  • Francesca D'Auria
  • Kieran Mc Morrow
  • Karl Pichelmann

Abstract

This paper shows that the migration-induced re-allocation of labour resources across countries following the 2004 EU enlargement process has already brought sizeable economic benefits for the enlarged EU. In addition, the simulation results suggest that once the present temporary restrictions on the flow of EU10 workers come to an end and the long-run migration potential of around 3 million is eventually realised, the economic gains may easily match those from a further integration of the EU's goods and capital markets. At the level of the individual "sending" and "receiving" countries, the overall economic impact of migration is essentially determined by the speed of adjustment of labour and capital; by the skill characteristics of the migrant and native populations; and by the actual size of the migration flows.

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Bibliographic Info

Paper provided by Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission in its series European Economy - Economic Papers with number 349.

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Length: 32 pages
Date of creation: Nov 2008
Date of revision:
Handle: RePEc:euf:ecopap:0349

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Keywords: growth; migration; European Union; Economic impact of migration flows following the 2004 EU enlargement process; A model based analysis; D'Auria; Mc Morrow; Pichelmann;

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  1. Drinkwater, Stephen & Eade, John & Garapich, Michal, 2006. "Poles Apart? EU Enlargement and the Labour Market Outcomes of Immigrants in the UK," IZA Discussion Papers 2410, Institute for the Study of Labor (IZA).
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  5. repec:nsr:niesrd:292 is not listed on IDEAS
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  7. Borjas, George J., 1999. "The economic analysis of immigration," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 28, pages 1697-1760 Elsevier.
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  12. Ratto, Marco & Roeger, Werner & Veld, Jan in 't, 2009. "QUEST III: An estimated open-economy DSGE model of the euro area with fiscal and monetary policy," Economic Modelling, Elsevier, vol. 26(1), pages 222-233, January.
  13. Dora M. Iakova, 2007. "The Macroeconomic Effects of Migration From the New European Union Member States to the United Kingdom," IMF Working Papers 07/61, International Monetary Fund.
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  15. Christian Dustmann & Francesca Fabbri & Ian Preston, 2005. "The Impact of Immigration on the British Labour Market," Economic Journal, Royal Economic Society, vol. 115(507), pages F324-F341, November.
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