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Emigration and Wages: The EU Enlargement Experiment

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  • Benjamin Elsner

    (Trinity College Dublin, Department of Economics and IIIS)

Abstract

This paper studies the impact of a large emigration wave on real wages in the source country. Following EU enlargement in 2004, a large share of the workforce of the Central and Eastern Europe emigrated to Western Europe. Using data from Lithuania for the calibration of a factor demand model I show that emigration had a significant short-run impact on real wages in the source country. In particular, emigration led to a change in the wage distribution between young and old workers. The wages of young workers increased by 6%, whereas the wages of old workers decreased by around 1%. On the contrary, I find no effect on the wage distribution between workers of different education levels.

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Bibliographic Info

Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2011.76.

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Date of creation: Nov 2011
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Handle: RePEc:fem:femwpa:2011.76

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Keywords: Emigration; EU Enlargement; European Integration; Wage Distribution;

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References

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  1. Jason Gagnon, 2011. "“Stay With Us?” The Impact of Emigration on Wages in Honduras," OECD Development Centre Working Papers 300, OECD Publishing.
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  21. Yann Algan & Christian Dustmann & Albrecht Glitz & Alan Manning, 2009. "The economic situation of first- and second-generation immigrants in France, Germany and the United Kingdom," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 28680, London School of Economics and Political Science, LSE Library.
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Citations

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Cited by:
  1. Francine D. Blau & Lawrence M. Kahn, 2012. "Immigration and the Distribution of Incomes," NBER Working Papers 18515, National Bureau of Economic Research, Inc.
  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.
  3. Elsner, Benjamin, 2012. "Does Emigration Benefit the Stayers? Evidence from EU Enlargement," IZA Discussion Papers 6843, Institute for the Study of Labor (IZA).
  4. Elsner, Benjamin & Zimmermann, Klaus F., 2013. "10 Years After: EU Enlargement, Closed Borders, and Migration to Germany," IZA Discussion Papers 7130, Institute for the Study of Labor (IZA).
  5. Amalia Cristescu & Maria Denisa Vasilescu & Larisa Stanila & Madalina Ecaterina Popescu, 2013. "Regional Analysis Of The Real Earnings In Romania," Romanian Journal of Regional Science, Romanian Regional Science Association, Romanian Regional Science Association, vol. 7(2), pages 58-78, DECEMBER.

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