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Emigration and Wages: The EU Enlargement Experiment

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  • Elsner, Benjamin

    ()
    (IZA)

Abstract

The enlargement of the European Union provides a unique opportunity to study the impact of the lifting of migration restrictions on the migrant sending countries. With EU enlargement in 2004, 1.2 million workers from Eastern Europe emigrated to the UK and Ireland. I use this emigration wave to show that emigration significantly changed the wage distribution in the sending country, in particular between young and old workers. Using a novel dataset from Lithuania, the UK and Ireland for the calibration of a structural model of labor demand, I find that over the period of five years emigration increased the wages of young workers by 6%, while it had no effect on the wages of old workers. Contrary to the immigration literature, there is no significant effect of emigration on the wage distribution between high-skilled and low-skilled workers.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6111.

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Length: 42 pages
Date of creation: Nov 2011
Date of revision:
Publication status: published in: Journal of International Economics, 2013, 91(1), 154-163
Handle: RePEc:iza:izadps:dp6111

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Keywords: emigration; EU enlargement; European integration; wage distribution;

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References

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Citations

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Cited by:
  1. 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).
  2. Francine D. Blau & Lawrence Kahn, 2013. "Immigration and the Distribution of Incomes," CESifo Working Paper Series 4561, CESifo Group Munich.
  3. 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.
  4. Benjamin Elsner, 2013. "Does emigration benefit the stayers? Evidence from EU enlargement," Journal of Population Economics, Springer, Springer, vol. 26(2), pages 531-553, April.
  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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