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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by IIIS in its series The Institute for International Integration Studies Discussion Paper Series with number iiisdp326.
Length: 39 pages
Date of creation: Jan 2009
Date of revision:
Emigration; EU Enlargement; Labor Mobility;
Other versions of this item:
- Benjamin Elsner, 2010. "Does Emigration Benefit the Stayers? The EU Enlargement as a Natural Experiment. Evidence from Lithuania," Working Papers 2010.151, Fondazione Eni Enrico Mattei.
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - 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-2010-06-04 (All new papers)
- NEP-EEC-2010-06-04 (European Economics)
- NEP-EUR-2010-06-04 (Microeconomic European Issues)
- NEP-LAB-2010-06-04 (Labour Economics)
- NEP-TRA-2010-06-04 (Transition Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
- Peri, Giovanni & Ottaviano, Gianmarco L. P., 2006.
"Rethinking the Effects of Immigration on Wages,"
06-34, University of California at Davis, Department of Economics.
- Giovanni Peri & Gianmarco I.P. Ottaviano, 2006. "Rethinking the Effects of Immigration on Wages," Working Papers 634, University of California, Davis, Department of Economics.
- Ottaviano, Gianmarco I. P. & Peri, Giovanni, 2007. "Rethinking the effects of immigration on wages," HWWI Research Papers 3-8, Hamburg Institute of International Economics (HWWI).
- Gianmarco I.P. Ottaviano & Giovanni Peri, 2006. "Rethinking the Effects of Immigration on Wages," NBER Working Papers 12497, National Bureau of Economic Research, Inc.
- Joseph G. Altonji & David Card, 1991. "The Effects of Immigration on the Labor Market Outcomes of Less-skilled Natives," NBER Chapters, in: Immigration, Trade and the Labor Market, pages 201-234 National Bureau of Economic Research, Inc.
- George J. Borjas, 2003.
"The Labor Demand Curve Is Downward Sloping: Reexamining The Impact Of Immigration On The Labor Market,"
The Quarterly Journal of Economics,
MIT Press, vol. 118(4), pages 1335-1374, November.
- 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.
- 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.
- Catia Batista, 2007. "Joining the EU: Capital Flows, Migration and Wages," Economics Series Working Papers 342, University of Oxford, Department of Economics.
- Hans-Werner Sinn, 2004. "EU Enlargement, Migration and the New Constitution," CESifo Working Paper Series 1367, CESifo Group Munich.
- Alan Barrett & David Duffy, 2007.
"Are Ireland's Immigrants Integrating into its Labour Market?,"
WP199, Economic and Social Research Institute (ESRI).
- Barrett, Alan & Duffy, David, 2007. "Are Ireland’s Immigrants Integrating into its Labour Market?," IZA Discussion Papers 2838, Institute for the Study of Labor (IZA).
- Mishra, Prachi, 2007. "Emigration and wages in source countries: Evidence from Mexico," Journal of Development Economics, Elsevier, vol. 82(1), pages 180-199, January.
- 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).
- 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).
Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:CitEc Project, subscribe to its RSS feed for this item.
- Benjamin Elsner, 2011.
"Emigration and Wages: The EU Enlargement Experiment,"
The Institute for International Integration Studies Discussion Paper Series
- Benjamin Elsner, 2011. "Emigration and Wages: The EU Enlargement Experiment," Working Papers 2011.76, Fondazione Eni Enrico Mattei.
- 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.
- Benjamin Elsner, 2011. "Emigration and Wages: The EU Enlargement Experiment," Trinity Economics Papers tep1311, Trinity College Dublin, Department of Economics.
- Elsner, Benjamin, 2011. "Emigration and Wages: The EU Enlargement Experiment," IZA Discussion Papers 6111, Institute for the Study of Labor (IZA).
- 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.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Eva Mateo).
If references are entirely missing, you can add them using this form.