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The Macroeconomic Effects of Migration from the New European Union Member States to the United Kingdom

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  • Dora M. Iakova
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    Abstract

    The United Kingdom allowed workers from the ten new European Union member countries immediate access to its labor market after the accession in 2004. This paper uses a general equilibrium framework to explore the dynamic adjustment of the UK economy to the postaccession surge in immigration. Simulations show that immigration is likely to have positive effects on economic growth, capital accumulation, consumption, and the public finances.

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    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=20543
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    Bibliographic Info

    Paper provided by International Monetary Fund in its series IMF Working Papers with number 07/61.

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    Length: 54
    Date of creation: 01 Mar 2007
    Date of revision:
    Handle: RePEc:imf:imfwpa:07/61

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    Related research

    Keywords: Migration; European Union; Economic models; Labor mobility;

    This paper has been announced in the following NEP Reports:

    References

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    1. Hamid Faruqee, 2002. "Population Aging and Its Macroeconomic Implications: A Framework for Analysis," IMF Working Papers 02/16, International Monetary Fund.
    2. Blanchflower, David G. & Saleheen, Jumana & Shadforth, Chris, 2007. "The Impact of the Recent Migration from Eastern Europe on the UK Economy," IZA Discussion Papers 2615, Institute for the Study of Labor (IZA).
    3. Boeri, Tito & Brücker, Herbert, 2005. "Migration, Co-ordination Failures and EU Enlargement," IZA Discussion Papers 1600, Institute for the Study of Labor (IZA).
    4. Hamid Faruqee & Douglas Laxton, 2000. "Life-Cycles, Dynasties, Savings: Implications for Closed and Small, Open Economies," IMF Working Papers 00/126, International Monetary Fund.
    5. Blanchard, Olivier J, 1985. "Debt, Deficits, and Finite Horizons," Journal of Political Economy, University of Chicago Press, vol. 93(2), pages 223-47, April.
    6. George J. Borjas, 2001. "Does Immigration Grease the Wheels of the Labor Market?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 32(1), pages 69-134.
    7. Hamid Faruqee & Douglas Laxton & Bart Turtelboom & Peter Isard & Eswar Prasad, 1998. "Multimod Mark III: The Core Dynamic and Steady State Model," IMF Occasional Papers 164, International Monetary Fund.
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    Cited by:
    1. Vladimir Borgy & Xavier Chojnicki, 2007. "Labor Migration: Macroeconomic and Demographic Outlook for Europe and Neighborhood Regions," Working Papers 2007-23, CEPII research center.
    2. Francesca D'Auria & Kieran Mc Morrow & Karl Pichelmann, 2008. "Economic impact of migration flows following the 2004 EU enlargement process - A model based analysis," European Economy - Economic Papers 349, Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission.

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