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The Effect of Emigration from Poland on Polish Wages

Author

Listed:
  • Christian Dustmann

    () (University College London and CReAM)

  • Tommaso Frattini

    () (Università degli Studi di Milano, CReAM, LdA and IZA)

  • Anna Rosso

    () (University College London and CReAM)

Abstract

This paper analyses the effect of emigration from Poland around the time of EU accession on the Polish labour market. We develop a simple model that guides our empirical specification and provides a clear interpretation for our estimates. Focussing on the 1998–2007 period for Poland, we use a unique data set that contains information about household members who are currently living abroad, which allows us to develop region-specific emigration rates and estimate emigration’s effect on wages using within-region variation. Our results show that emigration from Poland was largest for workers with intermediate-level skills and that it is wages for this skill group that increased most. We also show that emigration led to a slight increase in wages overall but that workers at the low end of the skill distribution made no gains and may actually have experienced slight wage decreases.

Suggested Citation

  • Christian Dustmann & Tommaso Frattini & Anna Rosso, 2012. "The Effect of Emigration from Poland on Polish Wages," CReAM Discussion Paper Series 1229, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  • Handle: RePEc:crm:wpaper:1229
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    References listed on IDEAS

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    1. Milo Bianchi & Paolo Buonanno & Paolo Pinotti, 2008. "Do immigrants cause crime?," Working Papers halshs-00586864, HAL.
    2. Elsner, Benjamin, 2013. "Emigration and wages: The EU enlargement experiment," Journal of International Economics, Elsevier, vol. 91(1), pages 154-163.
    3. Milo Bianchi & Paolo Buonanno & Paolo Pinotti, 2012. "Do Immigrants Cause Crime?," Journal of the European Economic Association, European Economic Association, vol. 10(6), pages 1318-1347, December.
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    5. Tommaso Frattini, 2012. "Immigrazione," Rivista di Politica Economica, SIPI Spa, issue 3, pages 363-407, July-Sept.
    6. Mckenzie, David & Rapoport, Hillel, 2007. "Network effects and the dynamics of migration and inequality: Theory and evidence from Mexico," Journal of Development Economics, Elsevier, vol. 84(1), pages 1-24, September.
    7. Timothy J. Hatton & Jeffrey G. Williamson, 2004. "International Migration in the Long-Run: Positive Selection, Negative Selection and Policy," NBER Working Papers 10529, National Bureau of Economic Research, Inc.
    8. Dustmann, Christian, 1997. "Return migration, uncertainty and precautionary savings," Journal of Development Economics, Elsevier, vol. 52(2), pages 295-316, April.
    9. Mishra, Prachi, 2007. "Emigration and wages in source countries: Evidence from Mexico," Journal of Development Economics, Elsevier, vol. 82(1), pages 180-199, January.
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    Citations

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    Cited by:

    1. Falco, Chiara & Rotondi, Valentina, 2016. "The Less Extreme, the More You Leave: Radical Islam and Willingness to Migrate," World Development, Elsevier, vol. 88(C), pages 122-133.
    2. De Paoli, Anna & Mendola, Mariapia, 2014. "International Labor Mobility and Child Work in Developing Countries," IZA Discussion Papers 8066, Institute for the Study of Labor (IZA).
    3. Bratti, Massimiliano & De Benedictis, Luca & Santoni, Gianluca, 2018. "Immigrant entrepreneurs, diasporas and exports," Working Papers 2018-01, Joint Research Centre, European Commission (Ispra site).
    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. World Bank, "undated". "Europe and Central Asia Economic Update, October 2017," World Bank Other Operational Studies 28534, The World Bank.
    6. Elsner, Benjamin, 2013. "Emigration and wages: The EU enlargement experiment," Journal of International Economics, Elsevier, vol. 91(1), pages 154-163.
    7. Christian Dustmann & Tommaso Frattini, 2014. "The Fiscal Effects of Immigration to the UK," Economic Journal, Royal Economic Society, vol. 124(580), pages 593-643, November.
    8. Caliendo, Lorenzo & Opromolla, Luca David & Parro, Fernando & Sforza, Alessandro, 2017. "Goods and Factor Market Integration: A Quantitative Assessment of the EU Enlargement," CEPR Discussion Papers 12213, C.E.P.R. Discussion Papers.
    9. Christian Dustmann & Uta Schönberg & Jan Stuhler, 2017. "Labor Supply Shocks, Native Wages, and the Adjustment of Local Employment," The Quarterly Journal of Economics, Oxford University Press, vol. 132(1), pages 435-483.
    10. 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.
    11. repec:bla:worlde:v:40:y:2017:i:4:p:678-702 is not listed on IDEAS
    12. Prachi Mishra, 2014. "Emigration and wages in source countries: a survey of the empirical literature," Chapters,in: International Handbook on Migration and Economic Development, chapter 9, pages 241-266 Edward Elgar Publishing.
    13. Anna De Paoli & Mariapia Mendola, 2014. "International Labor Mobility and Child Work in Developing Countries," Development Working Papers 365, Centro Studi Luca d'Agliano, University of Milano, revised 07 Apr 2014.
    14. Amalia Cristescu & Maria Denisa Vasilescu & Larisa Stanila & Madalina Ecaterina Popescu, 2013. "Regional Analysis Of The Real Earnings In Romania," Romanian Journal of Regional Science, Romanian Regional Science Association, vol. 7(2), pages 58-78, DECEMBER.
    15. Anna Rosso, 2016. "Skill Transferability and Immigrant-Native Wage Gaps," Development Working Papers 405, Centro Studi Luca d'Agliano, University of Milano, revised 21 Oct 2016.
    16. 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.
    17. 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.
    18. Chiara FALCO & Valentina ROTONDI, 2016. "The Less Extreme, the More You Leave: Radical Islam and Willingness to Migrate," Departmental Working Papers 2016-04, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.

    More about this item

    Keywords

    Emigration; Wages; Impact.;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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