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The Effect of Emigration on Unemployment: Evidence from the Central and Eastern European EU Member States

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  • Pryymachenko, Yana

    ()
    (Department of Economics, Lund University)

  • Fregert, Klas

    ()
    (Department of Economics, Lund University)

  • Andersson, Fredrik N. G.

    ()
    (Department of Economics, Lund University)

Abstract

This paper contributes to the scant empirical literature on the effects of emigration on source countries’ labour markets. Using a novel dataset by Brücker et al. (2009), we investigate whether emigration from the Central and Eastern European (CEE) members of European Union (EU) during the period 2000 to 2007 has contributed to the decline in unemployment observed in these countries. We find that along with structural changes that occurred in the CEE economies during the last decade, emigration indeed had a strong negative effect on unemployment in these countries. A 10 per cent increase in emigration rate leads to around 5 per cent decrease in unemployment rate. Given the minor effect of immigration on host countries’ unemployment found in the literature (including the studies examining the East-West European migration), this paper’s results indicate that the opening up of labour markets following the enlargement of EU in 2004 mainly has had positive effects.

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Bibliographic Info

Paper provided by Lund University, Department of Economics in its series Working Papers with number 2011:32.

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Length: 17 pages
Date of creation: 06 Oct 2011
Date of revision:
Handle: RePEc:hhs:lunewp:2011_032

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Postal: Department of Economics, School of Economics and Management, Lund University, Box 7082, S-220 07 Lund,Sweden
Phone: +46 +46 222 0000
Fax: +46 +46 2224613
Web page: http://www.nek.lu.se/en
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Keywords: emigration; unemployment; Central and Eastern Europe;

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  1. Benjamin Elsner, 2013. "Does emigration benefit the stayers? Evidence from EU enlargement," Journal of Population Economics, Springer, vol. 26(2), pages 531-553, April.
  2. David Blanchflower & Jumana Saleheen & Chris Shadforth, 2007. "The impact of the recent migration from Eastern Europe on the UK economy," Discussion Papers 17, Monetary Policy Committee Unit, Bank of England.
  3. repec:ese:iserwp:2006-10 is not listed on IDEAS
  4. Sara Lemos & Jonathan Portes, 2008. "New Labour? The Impact of Migration from Central and Eastern European Countries on the UK Labour Market," Discussion Papers in Economics 08/29, Department of Economics, University of Leicester.
  5. 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..
  6. 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).
  7. Rebecca Riley & Ray Barrell, 2007. "EU enlargement and migration: Assessing the macroeconomic impacts," NIESR Discussion Papers 1491, National Institute of Economic and Social Research.
  8. Prachi Mishra, 2006. "Emigration and Wages in Source Countries," IMF Working Papers 06/86, International Monetary Fund.
  9. Longhi, Simonetta & Nijkamp, Peter & Poot, Jacques, 2006. "The Impact of Immigration on the Employment of Natives in Regional Labour Markets: A Meta-Analysis," IZA Discussion Papers 2044, Institute for the Study of Labor (IZA).
  10. Christian Dustmann & Francesca Fabbri & Ian Preston, 2005. "The Impact of Immigration on the UK Labour Market," CReAM Discussion Paper Series 0501, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  11. Mishra, Prachi, 2007. "Emigration and wages in source countries: Evidence from Mexico," Journal of Development Economics, Elsevier, vol. 82(1), pages 180-199, January.
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