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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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  1. Anzelika Zaiceva & Klaus F. Zimmermann, 2008. "Scale, diversity, and determinants of�labour migration in Europe," Oxford Review of Economic Policy, Oxford University Press, Oxford University Press, vol. 24(3), pages 428-452, Autumn.
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Cited by:
  1. Yana Pryymachenko & Klas Fregert & Fredrik N. G. Andersson, 2013. "The effect of emigration on unemployment: Evidence from the Central and Eastern European EU member states," Economics Bulletin, AccessEcon, vol. 33(4), pages 2692-2697.
  2. Martin Kahanec & Lucia Mýtna Kureková, 2014. "Did post-enlargement labor mobility help the EU to adjust during the Great Recession? The case of Slovakia," Discussion Papers, Central European Labour Studies Institute (CELSI) 23, Central European Labour Studies Institute (CELSI).
  3. Kahanec, Martin, 2013. "Skilled labor flows : lessons from the European Union," Social Protection Discussion Papers 75529, The World Bank.
  4. 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).
  5. Kahanec, Martin, 2012. "Report No. 49: Skilled Labor Flows: Lessons from the European Union," IZA Research Reports, Institute for the Study of Labor (IZA) 49, Institute for the Study of Labor (IZA).
  6. Pasnicu, Daniela, 2013. "Action Guidelines For Effective Manage Labour Migration – Case Study For Romania," Annals of Spiru Haret University, Economic Series, Universitatea Spiru Haret, vol. 4(1), pages 11-21.

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