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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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    Cited by:

    1. Fedotenkov, Igor, 2015. "International Trade and Migration: Why Do Migrants Choose Small Countries?," MPRA Paper 66035, University Library of Munich, Germany.
    2. Pasnicu, Daniela, 2013. "Action Guidelines For Effective Manage Labour Migration – Case Study For Romania," Annals of Spiru Haret University, Economic Series, Universitatea Spiru Haret, vol. 4(1), pages 11-21.
    3. Edo Anthony, 2015. "The Impact of Immigration on Native Wages and Employment," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 15(3), pages 1151-1196, July.
    4. Giesing, Yvonne & Laurentsyeva, Nadzeya, 2016. "Emigration and Firm Productivity: Evidence from the Sequential Opening of EU Labour Markets," Annual Conference 2016 (Augsburg): Demographic Change 145850, Verein für Socialpolitik / German Economic Association.
    5. Elsner, Benjamin, 2013. "Emigration and wages: The EU enlargement experiment," Journal of International Economics, Elsevier, vol. 91(1), pages 154-163.
    6. Wassmann, Pia, 2015. "The Economic Effect of the EU Eastern Enlargement for Border Regions in the Old Member States," Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113028, Verein für Socialpolitik / German Economic Association.
    7. Åslund, Olof & Engdahl, Mattias, 2013. "Open borders, transport links and local labor markets," Working Paper Series 2013:9, Uppsala University, Department of Economics.
    8. Kahanec, Martin, 2012. "Skilled Labor Flows: Lessons from the European Union," IZA Research Reports 49, Institute for the Study of Labor (IZA).
    9. Gandolfi, Davide & Halliday, Timothy J. & Robertson, Raymond, 2014. "Globalization and Wage Convergence: Mexico and the United States," IZA Discussion Papers 8254, Institute for the Study of Labor (IZA).
    10. Alexander M. Danzer, 2015. "Skill biased labour demand and the wage growth of younger workers: Evidence from an unexpected pension reform," IBS Working Papers 2/2015, Instytut Badan Strukturalnych.
    11. 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.
    12. Davide Gandolfi & Timothy Halliday & Raymond Robertson, 2017. "Trade, FDI, migration, and the place premium: Mexico and the United States," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 153(1), pages 1-37, February.
    13. Wassmann, Pia, 2016. "The Economic Effects of the EU Eastern Enlargement on Border Regions in the Old Member States," Hannover Economic Papers (HEP) dp-582, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    14. Lehmann, Hartmut & Razzolini, Tiziano & Zaiceva, Anzelika, 2015. "Worker Flows and Labour Market Adjustment during the Great Recession: Evidence from a Large Shock," IZA Discussion Papers 9588, Institute for the Study of Labor (IZA).
    15. Yana Pryymachenko & Klas Fregert & Fredrik N. G. Andersson, 2013. "The effect of emigration on unemployment: Evidence from the Central and Eastern European EU member states," Economics Bulletin, AccessEcon, vol. 33(4), pages 2692-2697.
    16. Benjamin Elsner, 2015. "Does emigration increase the wages of non-emigrants in sending countries?," IZA World of Labor, Institute for the Study of Labor (IZA), pages 208-208, November.
    17. Anzelika Zaiceva, 2014. "Post-enlargement emigration and new EU members' labor markets," IZA World of Labor, Institute for the Study of Labor (IZA), pages 1-40, August.
    18. Elsner, Benjamin & Zimmermann, Klaus F., 2013. "10 Years After: EU Enlargement, Closed Borders, and Migration to Germany," IZA Discussion Papers 7130, Institute for the Study of Labor (IZA).
    19. Hartmut Lehmann & Tiziano Razzolini & Anzelika Zaiceva, 2016. "Worker flows and Labour Market Adjustment during the Great Recession: Evidence from a Large Shock," Department of Economics 0083, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
    20. Kahanec, Martin & Kureková, Lucia Mýtna, 2014. "Did Post-Enlargement Labor Mobility Help the EU to Adjust During the Great Recession? The Case of Slovakia," IZA Discussion Papers 8249, Institute for the Study of Labor (IZA).
    21. Davide Gandolfi & Timothy Halliday & Raymond Robertson, 2014. "Trade, Migration, and the Place Premium: Mexico and the United States," Working Papers 201425, University of Hawaii at Manoa, Department of Economics.
    22. Michael Fertig & Martin Kahanec, 2015. "Projections of potential flows to the enlarging EU from Ukraine, Croatia and other Eastern neighbors," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-27, December.
    23. Pia Wassmann, 2015. "The Economic Effect of the EU Eastern Enlargement for Border Regions in the Old Member States," ERSA conference papers ersa15p774, European Regional Science Association.

    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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