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Does Emigration Benefit the Stayers? Evidence from EU Enlargement

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  • Elsner, Benjamin

    ()
    (IZA)

Abstract

Around 9% of the Lithuanian workforce emigrated to Western Europe after the enlargement of the European Union in 2004. I exploit this emigration wave to study the effect of emigration on wages in the sending country. Using household data from Lithuania and work permit and census data from the UK and Ireland, I demonstrate that emigration had a significant positive effect on the wages of stayers. A one percentage-point increase in the emigration rate predicts a 0.67% increase in real wages. This effect, however, is only statistically significant for men.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6843.

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Length: 47 pages
Date of creation: Sep 2012
Date of revision:
Publication status: published in: Journal of Population Economics, 2013, 26 (2), 531-553
Handle: RePEc:iza:izadps:dp6843

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Keywords: labor mobility; EU enlargement; emigration;

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References

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  1. S. Longhi & P. Nijkamp & J. Poot, 2010. "Joint impacts of immigration on wages and employment: review and meta-analysis," Journal of Geographical Systems, Springer, vol. 12(4), pages 355-387, December.
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  14. Drinkwater, Stephen & Eade, John & Garapich, Michal, 2006. "Poles Apart? EU Enlargement and the Labour Market Outcomes of Immigrants in the UK," IZA Discussion Papers 2410, Institute for the Study of Labor (IZA).
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  16. Mishra, Prachi, 2007. "Emigration and wages in source countries: Evidence from Mexico," Journal of Development Economics, Elsevier, vol. 82(1), pages 180-199, January.
  17. Wadensjö, Eskil, 2007. "Migration to Sweden from the New EU Member States," IZA Discussion Papers 3190, Institute for the Study of Labor (IZA).
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  19. Bouton, Lawrence & Paul, Saumik & Tiongson, Erwin R., 2011. "The impact of emigration on source country wages : evidence from the Republic of Moldova," Policy Research Working Paper Series 5764, The World Bank.
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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. Pryymachenko, Yana & Fregert, Klas & Andersson, Fredrik N. G., 2011. "The Effect of Emigration on Unemployment: Evidence from the Central and Eastern European EU Member States," Working Papers 2011:32, Lund University, Department of Economics.
  3. Kahanec, Martin, 2012. "Report No. 49: Skilled Labor Flows: Lessons from the European Union," IZA Research Reports 49, Institute for the Study of Labor (IZA).
  4. Martin Kahanec, 2013. "Skilled Labor Flows: Lessons from the European Union," Research Reports 1, Central European Labour Studies Institute (CELSI).

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