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The East-West migration in Europe: skill levels of migrants and their effects on the european labour market

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Author Info
Massimiliano Serati () (Cattaneo University (LIUC))
Michela Martinoia () (Cattaneo University (LIUC))

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Abstract

In this paper we address two relevant issues among those characterising the macroeconomic literature on migration. (a) We evaluate which impact is produced by the immigration flows coming from the enlargement countries on the EU-15 labour market. (b) We draw clues on the migrant characteristics as for their skill levels. We adopt an insider/outsider model inspired by that of Amisano and Serati (2003), but enlarged in order to model the migration flows and fit to wage, participation and employment differentials between skilled and unskilled workers. We identify the structural shocks of the reduced VAR form of the model through sign restrictions imposed to the Impulse Response Functions, leaving unconstrained only the impact multipliers of relative (skilled to unskilled) wage, employment and labour force with respect to a migration shock. This is equivalent to adopt an agnostic approach, letting emerge freely the signals coming from the data: combining them with theoretical suggestions we derive at least weak indications on the fact that the skill mix of migrants is either biased towards high or low qualified labour. It does emerge that migration from Eastern European countries towards the EU-15 is mainly constituted by skilled workers and generates effects of reduction of the employment gap; on the other side, it enlarges the skilled to unskilled relative wage gap. The whole picture suggests the adoption of policies aimed at attract skilled migration through economic but also social and environmental incentives.

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Paper provided by Cattaneo University (LIUC) in its series LIUC Papers in Economics with number 208.

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Length: 25 pages
Date of creation: Feb 2008
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Handle: RePEc:liu:liucec:208

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  1. Gianni Amisano & Massimiliano Serati, 2002. "What goes up sometimes stays up: Shocks and Institutions as Determinants of Unemployment Persistence," Tinbergen Institute Discussion Papers 02-116/4, Tinbergen Institute. [Downloadable!]
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  2. Faust, Jon & Leeper, Eric M, 1997. "When Do Long-Run Identifying Restrictions Give Reliable Results?," Journal of Business & Economic Statistics, American Statistical Association, vol. 15(3), pages 345-53, July.
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  3. Balmaseda, Manuel & Dolado, Juan J & Lopez-Salido, J David, 2000. "The Dynamic Effects of Shocks to Labour Markets: Evidence from OECD Countries," Oxford Economic Papers, Oxford University Press, vol. 52(1), pages 3-23, January.
  4. Blanchard, Olivier Jean & Quah, Danny, 1989. "The Dynamic Effects of Aggregate Demand and Supply Disturbances," American Economic Review, American Economic Association, vol. 79(4), pages 655-73, September. [Downloadable!] (restricted)
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  5. George J. Borjas & Richard B. Freeman & Lawrence F. Katz, 1996. "Searching for the Effect of Immigration on the Labor Market," NBER Working Papers 5454, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  6. Jon Faust, 1998. "The robustness of identified VAR conclusions about money," International Finance Discussion Papers 610, Board of Governors of the Federal Reserve System (U.S.). [Downloadable!]
  7. Canova, Fabio & Nicolo, Gianni De, 2002. "Monetary disturbances matter for business fluctuations in the G-7," Journal of Monetary Economics, Elsevier, vol. 49(6), pages 1131-1159, September. [Downloadable!] (restricted)
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  8. Paul Levine, 1999. "The welfare economics of immigration control," Journal of Population Economics, Springer, vol. 12(1), pages 23-43. [Downloadable!] (restricted)
  9. McKenna, C. J., 1996. "Education and the distribution of unemployment," European Journal of Political Economy, Elsevier, vol. 12(1), pages 113-132, April. [Downloadable!] (restricted)
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