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Rationality of Post-Accession Migration

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  • Katarzyna B. Budnik

    (Narodowy Bank Polski)

Abstract

Given large-scale Polish migration to the U.K. following EU enlargement in 2004, this study evaluates market efficiency in sorting Polish-born workers to the locations offering the highest returns to their skills. To establish whether Polish workers that emigrated to the U.K. did so on rational premises, wage regressions are run to identify the wage gains individuals may have expected to realize when migrating and when staying; and the Heckman (1979) self-selection model is used to tie up the migration decision with the decision to work and to identify returns to unobservable skills (e.g. motivation). Whereas the results support the rationality of migration from Poland to the U.K. (those who left gained in nominal and real terms), they are less conclusive about the optimality of staying (some of those who stayed might have earned more abroad). The outcomes suggest that the anticipated wage gains do not fully explain the intensity of observed migration and underline the importance of including nonincome factors, i.e. social costs, in exploring post-accession migration.

Suggested Citation

  • Katarzyna B. Budnik, 2009. "Rationality of Post-Accession Migration," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue 1, pages 57-83.
    • Handle: RePEc:onb:oenbfi:y:2009:i:1:b:3
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    Cited by:

    1. J. William Ambrosini & Karin Mayr & Giovanni Peri & Dragos Radu, 2011. "The Selection of Migrants and Returnees: Evidence from Romania and Implications," NBER Working Papers 16912, National Bureau of Economic Research, Inc.
    2. Ambrosini, J. William & Mayr, Karin & Peri, Giovanni & Radu, Dragos, 2012. "The Selection of Migrants and Returnees in Romania: Evidence and Long-Run Implications," IZA Discussion Papers 6664, Institute of Labor Economics (IZA).
    3. Ambrosini, J. William & Mayr, Karin & Peri, Giovanni & Radu, Dragos, 2012. "The Selection of Migrants and Returnees in Romania: Evidence and Long-Run Implications," IZA Discussion Papers 6664, Institute for the Study of Labor (IZA).
    4. Michael A. Clemens & Claudio Montenegro & Lant Pritchett, 2016. "Bounding the Price Equivalent of Migration Barriers," CID Working Papers 316, Center for International Development at Harvard University.
    5. Michael A. Clemens & Claudio E. Montenegro & Lant Pritchett, 2019. "The Place Premium: Bounding the Price Equivalent of Migration Barriers," The Review of Economics and Statistics, MIT Press, vol. 101(2), pages 201-213, May.
    6. Mario Liebensteiner, 2014. "Estimating the Income Gain of Seasonal Labor Migration," Review of Development Economics, Wiley Blackwell, vol. 18(4), pages 667-680, November.
    7. Vladimir Gligorov, 2009. "Mobility and Transition in Integrating Europe," Human Development Research Papers (2009 to present) HDRP-2009-15, Human Development Report Office (HDRO), United Nations Development Programme (UNDP), revised Apr 2009.

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