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Does Emigration Benefit the Stayers? The EU Enlargement as a Natural Experiment. Evidence from Lithuania

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  • Benjamin Elsner

    (Trinity College Dublin, Department of Economics and the Institute for International Integration Studies)

Abstract

The 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 Info

Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2010.151.

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Date of creation: Dec 2010
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Handle: RePEc:fem:femwpa:2010.151

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Keywords: Emigration; Labor Mobility; EU Enlargement;

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References

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  1. George J. Borjas, 2003. "The Labor Demand Curve is Downward Sloping: Reexamining the Impact of Immigration on the Labor Market," NBER Working Papers 9755, National Bureau of Economic Research, Inc.
  2. Gianmarco I. P. Ottaviano & Giovanni Peri, 2012. "Rethinking The Effect Of Immigration On Wages," Journal of the European Economic Association, European Economic Association, vol. 10(1), pages 152-197, 02.
  3. Hazans, Mihails & Philips, Kaia, 2011. "The Post-Enlargement Migration Experience in the Baltic Labor Markets," IZA Discussion Papers 5878, Institute for the Study of Labor (IZA).
  4. Joseph Altonji & David Card, 1989. "The Effects of Immigration on the Labor Market Outcome of Less-Skilled Natives," Working Papers 636, Princeton University, Department of Economics, Industrial Relations Section..
  5. Alan Barrett & David Duffy, 2007. "Are Ireland's Immigrants Integrating into its Labour Market?," Papers WP199, Economic and Social Research Institute (ESRI).
  6. Rachel M. Friedberg, 2001. "The Impact Of Mass Migration On The Israeli Labor Market," The Quarterly Journal of Economics, MIT Press, vol. 116(4), pages 1373-1408, November.
  7. Mishra, Prachi, 2007. "Emigration and wages in source countries: Evidence from Mexico," Journal of Development Economics, Elsevier, vol. 82(1), pages 180-199, January.
  8. Kahanec, Martin & Zaiceva, Anzelika & Zimmermann, Klaus F., 2009. "Lessons from Migration after EU Enlargement," IZA Discussion Papers 4230, Institute for the Study of Labor (IZA).
  9. George J. Borjas & Jeffrey Grogger & Gordon H. Hanson, 2008. "Imperfect Substitution between Immigrants and Natives: A Reappraisal," NBER Working Papers 13887, National Bureau of Economic Research, Inc.
  10. Hans-Werner Sinn, 2004. "EU Enlargement, Migration and the New Constitution," CESifo Working Paper Series 1367, CESifo Group Munich.
  11. Catia Batista, 2007. "Joining the EU: Capital Flows, Migration and Wages," Economics Series Working Papers 342, University of Oxford, Department of Economics.
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Blog mentions

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  1. Emigration & wages
    by chris dillow in Stumbling and Mumbling on 2010-06-08 13:25:06
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Cited by:
  1. Elsner, Benjamin, 2011. "Emigration and Wages: The EU Enlargement Experiment," Annual Conference 2011 (Frankfurt, Main): The Order of the World Economy - Lessons from the Crisis 48716, Verein für Socialpolitik / German Economic Association.
  2. Christian Dustmann & Tommaso Frattini & Anna Rosso, 2012. "The Effect of Emigration from Poland on Polish Wages," CReAM Discussion Paper Series 1229, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.

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