Does Emigration Benefit the Stayers? The EU Enlargement as a Natural Experiment. Evidence from Lithuania
AbstractThe eastern enlargement of the European Union in 2004 triggered a large flow of migrant workers from the new member states to the UK and Ireland. This paper analyzes the impact of this migration wave on the real wages in the source countries. I consider the case of Lithuania, which had the highest share of emigrants relative to its workforce among all ten new member states. Using data from the Lithuanian Household Budget Survey and the Irish Census, I find that emigration had a significant positive effect on the wages of men who stayed in the country, but no such effect is visible for women. A percentage point increase in the emigration rate increases the real wage of men on average by 1%. Several robustness checks confirm this result.
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Bibliographic InfoPaper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2010.151.
Date of creation: Dec 2010
Date of revision:
Emigration; Labor Mobility; EU Enlargement;
Other versions of this item:
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
- R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-02-12 (All new papers)
- NEP-EEC-2011-02-12 (European Economics)
- NEP-EUR-2011-02-12 (Microeconomic European Issues)
- NEP-LAB-2011-02-12 (Labour Economics)
- NEP-MIG-2011-02-12 (Economics of Human Migration)
- NEP-TRA-2011-02-12 (Transition Economics)
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