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Modelling the Effects of Immigration on Regional Economic Performance and the Wage Distribution: A CGE Analysis of Three EU Regions

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Author Info
Pouliakas, Konstantinos
Roberts, Deborah
Balamou, Eudokia
Psaltopoulos, Dimitris

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Abstract

The paper uses a regional Computable General Equilibrium (CGE) model to analyse the effects of immigration on three small remote EU regions located within Scotland, Greece and Latvia. Two migration scenarios are assessed. In the first, total labour supply is affected. In the second, the importance of migratory flows by differential labour skill types is investigated. The results indicate significant differences in the extent to which regional economies are affected by immigration. They also suggest that remote regions are highly vulnerable to the out-migration of skilled workers (‘brain-drain’) while the in-migration of unskilled workers leads to widening wage inequality.

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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 14157.

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Date of creation: 30 Nov 2008
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Handle: RePEc:pra:mprapa:14157

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Related research
Keywords: Immigration; CGE; Skills; Wage Inequality; Brain-drain; Regional economies;

Find related papers by JEL classification:
R13 - Urban, Rural, and Regional Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
D33 - Microeconomics - - Distribution - - - Factor Income Distribution
D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
R23 - Urban, Rural, and Regional Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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References listed on IDEAS
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  1. Peri, Giovanni & Ottaviano, Gianmarco I. P., 2005. "Rethinking the Gains from Immigration: Theory and Evidence from the U.S," Working Papers 05-8, University of California at Davis, Department of Economics. [Downloadable!]
    Other versions:
  2. Simonetta Longhi & Peter Nijkamp & Jacques Poot, 2004. "A Meta-Analytic Assessment of the Effect of Immigration on Wages," Population Studies Centre Discussion Papers dp-47, University of Waikato, Population Studies Centre. [Downloadable!]
    Other versions:
  3. George J. Borjas & Lawrence F. Katz, 2005. "The Evolution of the Mexican-Born Workforce in the United States," NBER Working Papers 11281, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  4. Christian Dustmann & Francesca Fabbri & Ian Preston, 2005. "The Impact of Immigration on the British Labour Market," Economic Journal, Royal Economic Society, vol. 115(507), pages F324-F341, November. [Downloadable!] (restricted)
  5. Edward C. Waters & David W. Holland & Bruce A. Weber, 1997. "Economic Impacts of a Property Tax Limitation: A Computable General Equilibrium Analysis of Oregon's Measure 5," Land Economics, University of Wisconsin Press, vol. 73(1), pages 72-89. [Downloadable!] (restricted)
  6. Aslan Zorlu & Clara H. Mulder, 2007. "Initial and Subsequent Location Choices of Immigrants to the Netherlands," IZA Discussion Papers 3036, Institute for the Study of Labor (IZA). [Downloadable!]
  7. David G. Blanchflower & Jumana Saleheen & Chris Shadforth, 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). [Downloadable!]
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  8. Sherman Robinson, Andrea Cattaneo, Moataz El-Said, 2001. "Updating and Estimating a Social Accounting Matrix Using Cross Entropy Methods," Economic Systems Research, Taylor and Francis Journals, vol. 13(1), pages 47-64, March. [Downloadable!] (restricted)
    Other versions:
  9. Wang-Sheng Lee, 2007. "Immigration and Wages: An Open Economy Model," Melbourne Institute Working Paper Series wp2007n07, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne. [Downloadable!]
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