Emigration and Wages: The EU Enlargement Experiment
Abstract
This paper studies the impact of a large emigration wave on real wages in the source country. Following EU enlargement in 2004, a large share of the workforce of the Central and Eastern Europe emigrated to Western Europe. Using data from Lithuania for the calibration of a factor demand model I show that emigration had a significant short-run impact on real wages in the source country. In particular, emigration led to a change in the wage distribution between young and old workers. The wages of young workers increased by 6%, whereas the wages of old workers decreased by around 1%. On the contrary, I find no effect on the wage distribution between workers of different education levels.Download Info
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Paper provided by Trinity College Dublin, Department of Economics in its series Trinity Economics Papers with number tep1311.
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Length: 49 pages
Date of creation: Jan 2011
Date of revision:
Handle: RePEc:tcd:tcduee:tep1311
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Postal: Trinity College, Dublin 2
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Web page: http://www.tcd.ie/Economics/
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For corrections or technical questions regarding this item, or to correct its listing, contact: (Patricia Hughes).
Related research
Keywords: Emigration; EU Enlargement; European Integration; Wage Distribution;Other versions of this item:
- Benjamin Elsner, 2011. "Emigration and Wages: The EU Enlargement Experiment," Working Papers 2011.76, Fondazione Eni Enrico Mattei.
- Elsner, Benjamin, 2011. "Emigration and Wages: The EU Enlargement Experiment," IZA Discussion Papers 6111, Institute for the Study of Labor (IZA).
- Benjamin Elsner, 2011. "Emigration and Wages: The EU Enlargement Experiment," The Institute for International Integration Studies Discussion Paper Series iiisdp379, IIIS.
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- R23 - Urban, Rural, Regional and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-09-22 (All new papers)
- NEP-EEC-2011-09-22 (European Economics)
- NEP-EUR-2011-09-22 (Microeconomic European Issues)
- NEP-INT-2011-09-22 (International Trade)
- NEP-LAB-2011-09-22 (Labour Economics)
- NEP-LMA-2011-09-22 (Labor Markets - Supply, Demand, & Wages)
- NEP-MIG-2011-09-22 (Economics of Human Migration)
- NEP-TRA-2011-09-22 (Transition Economics)
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