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Does emigration benefit the stayers? Evidence from EU enlargement

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  • Benjamin Elsner

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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. Copyright Springer-Verlag Berlin Heidelberg 2013

Suggested Citation

  • Benjamin Elsner, 2013. "Does emigration benefit the stayers? Evidence from EU enlargement," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(2), pages 531-553, April.
  • Handle: RePEc:spr:jopoec:v:26:y:2013:i:2:p:531-553
    DOI: 10.1007/s00148-012-0452-6
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    References listed on IDEAS

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    More about this item

    Keywords

    Emigration; EU enlargement; Labor mobility;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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